Global semiconductor stocks have sold off sharply in recent trading, and one securities analyst says the decline in Korean chip names now appears to have gone well beyond what fundamentals would justify. According to a July 20 report carried by BlockBeats and attributed to Jin10, Lee Jaeman, a researcher at Hana Securities, said the recent plunge looks excessive even after accounting for market concerns about cyclical swings in the semiconductor sector. In his view, the next potential catalyst for a rebound in chip shares could come from earnings reports due from major U.S. hyperscale cloud companies starting in late July. Lee said combined capital expenditure growth at Alphabet, Microsoft, Meta, and Amazon is expected to rise from 80% in the first quarter of 2026 to 83% in the second quarter and 92% in the third quarter. He also said strong investment demand could allow semiconductor companies to maintain high operating profit margins.
Global semiconductor stocks have dropped broadly in recent trading, and a securities analyst says the selloff has gone beyond what company fundamentals imply.
According to BlockBeats on July 20, citing Jin10, Lee Jaeman, a researcher at Hana Securities, said the recent plunge in chip shares appears excessive even when market concerns over semiconductor cyclicality are taken into account.
Lee said a likely catalyst for a rebound in semiconductor shares could come from earnings reports that U.S. hyperscale cloud service providers are set to release starting in late July.
He added that combined capital expenditure growth at Alphabet, Microsoft, Meta, and Amazon is expected to increase from 80% in the first quarter of 2026 to 83% in the second quarter and 92% in the third quarter.
Lee also said semiconductor companies may be able to sustain high operating profit margins given rising investment demand.
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