[Click e-Stock] TCK Set to Benefit from Expansion of Agentic AI Driven by 'Muse'

On September 30, KB Securities stated that with the expansion of personal Agentic Artificial Intelligence (AI) services, demand for NAND is expected to increase, which will benefit TCK. KB Securities maintained its 'Buy' investment rating on TCK and raised its target price from 300,000 won to 360,000 won.

Changmin Lee, an analyst at KB Securities, said, "TCK's operating results for the third quarter of this year are estimated at 106.3 billion won in revenue and 32.8 billion won in operating profit, which are in line with consensus forecasts," adding, "With the recovery of the NAND market, the company's overall utilization rate should improve, and the proportion of high-margin NAND-related business is increasing, which is expected to result in strong performance."

He added, "Fourth quarter results are forecast at 113.9 billion won in revenue and 36.7 billion won in operating profit." He explained, "As the share of business with YMTC expands in earnest, not only will SiC Focus Rings see increased shipments, but TCK will also ship Shower Heads, which have the highest profitability, leading to additional improvements in profitability."

"Currently, major customers are asking TCK, which holds a 90% share in the SiC Focus Ring before-market segment, to double its current production capacity. Purchase orders (POs) are also being increased to encourage expanded capital expenditures (Capex). It is expected that full-capacity operations will continue through 2027, especially focused on NAND-related demand," he added.

He further explained, "With the success of Meta's personal Agentic AI service 'Muse', TCK, a leading stock in the NAND sector, stands to benefit. As Agentic AI expands, multi-step reasoning cycles are repeated, causing token usage per person to spike dramatically, and demand for NAND for KV caching and long-term context storage inevitably rises."

He also said, "A 2% cost reduction due to the end of KC sales commissions is an additional factor for improved profitability. Even at the current stock price level, solid earnings growth centered on NAND is expected to continue through 2027."

This content was produced with the assistance of AI translation services.