The South Korean stock market ushered in a round of sharp rise, but an abnormal situation occurred: stock valuations fell to historic lows. The Korea Composite Stock Price Index has accumulated a cumulative increase of about 80% this year, hitting record highs one after another, but analysts are raising profit expectations faster. The profits of the two major memory chip giants, Samsung Electronics and SK Hynix, soared sharply, making the index's forward price-earnings ratio only 6.4 times, even lower than during the 2008 global financial crisis. Recently, the market has experienced a sharp sell-off due to renewed market doubts about the artificial intelligence sector, and valuations have been further depressed. The question facing investors is whether such a rare low price actually means a good opportunity to enter the market, or whether the market has taken into account the expectation that the memory chip boom cycle will eventually come to an end. Francis Tan, Asia's chief strategist at Oriental Huili Wealth Management in Singapore, said, “Whether it is appropriate to buy depends on individual position allocation. If investors currently have a relatively low share of relevant targets in their holdings, now is a good time to lay out, and the portfolio can bring growth benefits tied to the artificial intelligence circuit. The company's profit fundamentals are steady, and the market expects subsequent profits to remain strong.”

The South Korean stock market ushered in a round of sharp rise, but an abnormal situation occurred: stock valuations fell to historic lows. The Korea Composite Stock Price Index has accumulated a cumulative increase of about 80% this year, hitting record highs one after another, but analysts are raising profit expectations faster. The profits of the two major memory chip giants, Samsung Electronics and SK Hynix, soared sharply, making the index's forward price-earnings ratio only 6.4 times, even lower than during the 2008 global financial crisis. Recently, the market has experienced a sharp sell-off due to renewed market doubts about the artificial intelligence sector, and valuations have been further depressed. The question facing investors is whether such a rare low price actually means a good opportunity to enter the market, or whether the market has taken into account the expectation that the memory chip boom cycle will eventually come to an end. Francis Tan, Asia's chief strategist at Oriental Huili Wealth Management in Singapore, said, “Whether it is appropriate to buy depends on individual position allocation. If investors currently have a relatively low share of relevant targets in their holdings, now is a good time to lay out, and the portfolio can bring growth benefits tied to the artificial intelligence circuit. The company's profit fundamentals are steady, and the market expects subsequent profits to remain strong.”