Invezz
26 Oct 2026, 03:35 UTC · 1h ago
Impact · against what's priced in
The market is currently over-discounting 2027 earnings for South Korean chipmakers, creating a valuation floor. While current prices reflect fears of peaking AI demand, a re-rating is possible if upcoming October earnings confirm durable margins and order visibility.
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What the story claims
4 claims · scored −1 bearish … +1 bullish · 2 new · 2 priced in
Goldman Sachs calculates that current semiconductor valuations imply a 65% drop in the sector's 2027 earnings.
Newnote dated October 25
So whatIf 2027 estimates are revised upward toward consensus, it would trigger a significant valuation re-rating for Samsung and SK Hynix.
More positive than 93% of claims this week
Goldman Sachs reduced its KOSPI target from 12,000 to 9,000, while still seeing roughly 62% upside over 12 months.
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Goldman Sachs suggests the market is pricing a 65% drop in 2027 semiconductor earnings, which it considers too severe, while ongoing 15T won buybacks provide a fundamental floor.
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Despite sell-offs driven by AI demand fears, potential for new dividends and buybacks, alongside an overly negative earnings outlook for 2027, suggests significant upside.
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Scored by the NIS engine · methodology.
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Newnote dated October 25
So whatThe 25% cut in the target suggests a move toward more conservative multiples for FY2026/2027.
More positive than 78% of claims this week
Samsung Electronics' preliminary guidance for Q3 projected revenue of 195 trillion won and operating profit of 107.4 trillion won.
Priced inguidance released October 8
So whatThe full results due October 29 will determine if the 107.4 trillion won profit baseline is sustainable into Q4.
More positive than 64% of claims this week
The KOSPI benchmark currently trades at approximately four times expected earnings over the next 12 months.
Priced inanalysis of current trading levels
So whatThis low multiple provides a valuation floor that limits further downside risk ahead of the Oct 28-29 earnings prints.
More positive than 51% of claims this week
Which stocks this story touches
More positive than 65% of ticker scores this week
Despite recent price drops, the article highlights record profits and ongoing buybacks as fundamental support.
More positive than 60% of ticker scores this week
The company is facing sell-offs due to AI demand fears, but buybacks and dividends provide a positive counter-thesis.
Near neutral — 91% of ticker scores this week are stronger
Goldman Sachs is mentioned as the analyst providing the outlook, not as a company affected by the news.
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