Analyst: Korean chip stocks’ decline has already exceeded fundamentals; earnings reports from US tech giants may become a rebound catalyst

Deep Tide TechFlow news: On July 20, according to a report by Korean media, semiconductor stocks worldwide have recently fallen sharply across the board. Analysts at securities firms said the share price decline has already gone far beyond the level reflected by fundamentals.

Lee Jaeman, a researcher at Hanwha Securities, said: “Even if we factor in market concerns about cyclical semiconductor fluctuations, the magnitude of the recent plunge in share prices seems excessive.” The researcher added: “We believe that the catalyst for a rebound in semiconductor company share prices will be the earnings reports of US hyperscale cloud service providers, which are expected to be released starting in late July.” He further said: “The expected combined capital expenditure growth rate for Alphabet, Microsoft, Meta, and Amazon will rise from 80% in the first quarter of 2026 to 83% in the second quarter, and to 92% in the third quarter.” He also said: “Given the growth in investment demand, it’s also possible for semiconductor companies to maintain high operating profit margins.” (Jin10)