KB Securities analysts E.T. Lee and D.E. Lee said that despite AI-driven elevated profit expectations, the recent pullback in Korean semiconductor stocks may partly reflect investor skepticism about the sustainability of earnings. Samsung Electronics and SK Hynix fell for a fifth straight session. The analysts said investors continue to view semiconductors as cyclical: supply bottlenecks can sharply lift profits in booms, but their easing can lead to inventory gluts and overinvestment. They poin

KB Securities analysts E.T. Lee and D.E. Lee said that despite AI-driven elevated profit expectations, the recent pullback in Korean semiconductor stocks may partly reflect investor skepticism about the sustainability of earnings. Samsung Electronics and SK Hynix fell for a fifth straight session. The analysts said investors continue to view semiconductors as cyclical: supply bottlenecks can sharply lift profits in booms, but their easing can lead to inventory gluts and overinvestment. They point to similar dynamics in post-pandemic diagnostics, masks, toilet paper and container shipping.