Morgan Stanley attacked Semiconductor sector again.

Short comment

Yesterday, Morgan Stanley reported expected doomsday for Semiconductor market, which pushed PHLX Semiconductor Index to -2.67%. Micron Technolgy, third manufacturer in markets of D-Ram and Nand-memory, ended at -9.87%. Today, Korean big players, Samsung Electronics and SK Hynix, ended at -2.60% and -3.68% individually.

In fact, report of Morgan Stanley wasn't a big surprise. Morgan Stanley has kept insisting that demands for Semiconductor products would be decreasing in near future.

For Korean players, they started at the lower level, and recovered the plunge a little: SK Hynix was off more than 5% at the start of the market. What we need to see is the recent flow of US and Chinese players in Big Tech: FAMGs and BATs. In recent days, NASDAQ has been showing downside-run, back to the 7,000s. Big tech players have led to the plunge, and there is high probability which the plunge not end yet.

Syndicated with the predictions of the banks (not just MS, Nomura also suggested similar prediction for the products), sharp plunges of Big tech, specially Chinese players which could complement decreasing demand with full equipment of US counterparts, could be critical to Korean players.

I preserve my opinion for band of Samsung Electronics: from ₩44,000 to ₩48,000, and changed the target for SK Hynix: from ₩100,000 to ₩80,000. We need to wait and see the situation.