Mirae Asset Global Investments
Mirae Asset Global Investments said the memory chip industry has entered a structural growth phase beyond a short-term recovery, as investment in artificial intelligence (AI) infrastructure continues to expand. In particular, the firm projected that SK hynix’s (000660.KS) planned American Depositary Receipt (ADR) listing next month could serve as a catalyst for expanding the global investor base and re-rating the corporate value of Korean semiconductor companies.
On Wednesday, Mirae Asset Global Investments held a webinar titled “Semiconductor Market Review and TIGER Semiconductor ETF Investment Strategy,” diagnosing that the memory chip industry is entering a structural growth phase amid expanding AI investment and intensifying competition in next-generation high-bandwidth memory (HBM). Samsung Electronics (005930.KS) and SK hynix have begun supplying 12-layer samples of HBM4E, the next-generation AI memory, while Nvidia has requested expanded supply and D-RAM spot prices have rebounded, raising expectations for an industry upturn. Earlier, global investment bank Morgan Stanley recently raised the possibility of “chipflation,” referring to a structural rise in memory prices.
The spread of AI agents and physical AI was also cited as a key factor that will boost memory demand. The firm projected that memory usage will increase as AI models are called more frequently than with conventional reactive chatbots. Given that the growth rate of remaining performance obligations (RPO) at the five global hyperscalers is expected to outpace the growth rate of capital expenditure (CAPEX), the firm analyzed that as AI infrastructure investment translates into actual revenue, improvements in memory prices and profit margins are likely to continue over the long term.
Jung Eui-hyun, head of the ETF management division at Mirae Asset Global Investments, noted, “Recent D-RAM spot prices have shown high volatility but have turned back to a rebound, and there is a growing possibility that memory will enter a ‘chipflation’ phase, where it becomes more expensive and harder to obtain over time, rather than an industry where prices get cheaper.” He added, “The latest AI chips carry significantly more HBM than the previous generation, and data center investment continues.”
The firm pointed to the SK hynix ADR listing, valued at about 45 trillion won and scheduled for the 10th of next month, as the biggest event. According to Mirae Asset Global Investments, if SK hynix is included in major global semiconductor indices, an inflow of about 7 trillion won in passive funds would be possible, and the firm also expects the potential for future inclusion in a representative Nasdaq index.
In particular, the firm analyzed that SK hynix’s projected price-to-earnings ratio (PER) for 2027 is about 6 times, lower than that of global competitor Micron, while its expected operating profit is larger. In the past, TSMC also experienced a re-rating of its corporate value as its global investor base expanded following its ADR listing, and the trend showed that as the ADR premium widened, the main shares followed suit. The firm explained that SK hynix can likewise expect its valuation discount to be resolved through an expansion of its global investor base.
Meanwhile, Mirae Asset Global Investments presented covered-call ETFs as an alternative that can pursue both the growth potential of semiconductors and income amid the recent volatile market. The “TIGER Dividend Covered Call Active ETF” and “TIGER Semiconductor TOP10 Covered Call Active ETF” are structured to include high weightings of Samsung Electronics and SK hynix while paying monthly distributions by utilizing option premiums on individual stocks.