BNP Paribas SA analyst William Bratton said that despite increased volatility in
South Korean chip stocks, the country's tech supercycle is expected to persist
in the near term. He said fundamentals and structural drivers behind the memory
rally remain intact, supported by strong earnings momentum and a lack of
convincing earnings growth stories elsewhere in the region. "It's too early to
say the forces driving Asian and Korean tech sectors have ended," he added,
while warning that if the tech cycle eventually turns, Korean equities could
face significant headwinds; recent pullbacks are normal consolidation rather
than a structural reversal of the tech investment theme.
