STOCKS | Morningstar Analyst Says Capex Uncertainty Weighs on Samsung Electronics and SK Hynix Shares

Morningstar analyst Jing Jie Yu said uncertainty over potential capital spending by Samsung Electronics and SK Hynix may be putting pressure on their share prices. According to Odaily, he said the two companies’ combined capital expenditures over the next decade could reach about 2,000 trillion won, nearly double Morningstar’s current forecast. Yu said this could include SK Hynix’s plans to invest in artificial intelligence data centers. He added that SK Hynix’s committed investment in the Yongin wafer fab cluster is estimated to have reached 600 trillion won. Yu said that if SK Hynix’s AI data center investment commitments and its potential capital expenditure plans are two separate investments, the memory chipmaker would face a clear risk of supply overshoot, as market demand typically slows when the capital expenditure cycle enters its late stage.