Mirae Asset Securities on the 5th maintained its 'overweight' rating on the semiconductor sector and 'buy' recommendations for Samsung Electronics and SK Hynix, stating that concerns over shrinking artificial intelligence (AI) demand are excessive. The brokerage's stance follows a sector-wide correction triggered by Meta's cloud business entry on the 1st, which highlighted potential surplus in AI computing resources. Analyst Kim Young-gun argued that the development does not signify a decisive reduction in AI infrastructure investment, positioning the current downturn as a valid low-price buying opportunity for semiconductor stocks.
Mirae Asset Forecasts $806 Billion Big Tech CAPEX in 2026
Mirae Asset Securities projects global big tech capital expenditure (CAPEX) will reach $806 billion in 2026 based on latest guidance, representing a 73.0% year-over-year increase. The firm expects spending growth to continue at over 20% in 2027. Kim noted that Alphabet announced a 100% CAPEX increase this year while signaling substantial growth next year, and Meta acknowledged underestimating computing demand. The analyst emphasized that with CAPEX baselines elevated, the direction of order backlogs warrants close attention.
Global Big Tech RPO Surges 24% QoQ in Q1
As of Q1, global big tech companies reported total remaining performance obligations (RPO) of $2.1 trillion, up 24% quarter-over-quarter. RPO expected to materialize within 24 months totaled $656 billion, growing 38.1% QoQ — exceeding overall backlog expansion. Kim stated that total RPO represents 20 times the sum of cloud revenue (6.5 times on a 24-month basis), indicating substantial latent demand. Oracle's backlog rose 16% to $638 billion despite an already elevated prior-quarter figure of $552 billion. The analyst added that further backlog expansion across big tech platforms remains possible.
Samsung Electronics Maintains 550,000 Won Target Price with 6.4x P/E
Mirae Asset Securities kept its buy rating and 550,000 won target price for Samsung Electronics, estimating Q2 and full-year operating profit at 84 trillion won and 383 trillion won respectively. Based on the stock price during trading on the 2nd, Samsung's price-to-earnings (P/E) ratio stands at 6.4x and price-to-book (P/B) at 2.7x, significantly below sector averages of 14.1x and 8.6x. At the target price, implied multiples are 11.7x P/E and 4.9x P/B. Kim estimated Samsung has secured nearly half its revenue through long-term supply agreements with multiple big tech clients, with high likelihood of additional contracts with Chinese customers leveraging the company's industry-leading production capacity. If Samsung executes its 2024–2026 commitment to return 50% of free cash flow (FCF) to shareholders, the analyst projects 2026 dividend yields of 3.9–6.8% for common shares and 5.9–10.3% for preferred shares at current prices.
SK Hynix ADR Listing Scheduled for the 10th
For SK Hynix, Mirae Asset maintained a 4.2 million won target price with Q2 and full-year operating profit estimates of 71 trillion won and 299 trillion won. Current P/E and P/B multiples are 7.5x and 4.7x, both below sector averages. Target-price-implied multiples for this year are 12.8x P/E and 8.1x P/B. Kim views the upcoming American Depositary Receipt (ADR) listing scheduled for the 10th as a valid catalyst. The analyst expects SK Hynix to rank within the top 25 of the Philadelphia Semiconductor Index (SOX) by market capitalization at the offering price, with potential index inclusion anticipated from next September. Kim forecasts the ADR will maintain a premium over domestic shares, with the local stock price expected to track ADR performance.
FAQ
Why did Mirae Asset Securities maintain its buy rating on Samsung Electronics and SK Hynix stocks on the 5th?
Mirae Asset Securities on the 5th stated that concerns over shrinking AI demand triggered by Meta's cloud business entry on the 1st are excessive and do not indicate a decisive reduction in AI infrastructure investment. Analyst Kim Young-gun positioned the sector correction as a low-price buying opportunity, citing projected 2026 global big tech CAPEX of $806 billion (up 73.0% year-over-year) and Q1 RPO growth of 24% quarter-over-quarter to $2.1 trillion.
What are the current valuation multiples for Samsung Electronics stocks compared to the semiconductor sector average?
Based on the stock price during trading on the 2nd, Samsung Electronics' P/E ratio is 6.4x and P/B is 2.7x, significantly below the semiconductor sector averages of 14.1x P/E and 8.6x P/B. Mirae Asset Securities maintained a 550,000 won target price, which implies 11.7x P/E and 4.9x P/B multiples.
When is SK Hynix's ADR listing scheduled and what is its significance?
SK Hynix's American Depositary Receipt (ADR) listing is scheduled for the 10th. Analyst Kim Young-gun expects the company to rank within the top 25 of the Philadelphia Semiconductor Index (SOX) by market capitalization at the offering price, with potential index inclusion from next September. The analyst forecasts the ADR will maintain a premium over domestic shares, with the local stock price expected to track ADR performance.
