Woofun AI reports that Kim Sunwoo of Meritz Securities asserts the market significantly misunderstands the fundamentals of Samsung Electronics and SK Hynix. He argues that current semiconductor valuations rely on fragmented information and short-term pessimism rather than strategic reality. Regarding SK Hynix’s long-term supply agreements with major tech firms, Sunwoo clarifies these are strategic investments to secure early AI data center demand, not mere price concessions.

Sunwoo projects the DRAM supply-demand ratio for the latter half of this year will range between 75% and 80%, potentially declining to the 60% range next year. Even accounting for genuine end demand, the ratio is expected near 70%, indicating a worsening supply shortage. He notes that share buybacks, cancellations, and dividends from Samsung, alongside potential special dividends from SK Hynix, should alleviate market concerns as both firms remain undervalued.