Micron's Earnings Surprise: Will It Ignite a Rebound in Korean Semiconductor Stocks?

Micron Reports Quarterly Results Far Exceeding Expectations
Long-Term Boom Expected as AI Investment Frenzy Continues
Rising Anticipation for Strong Earnings from Samsung Electronics and SK hynix

On the 1st, the KOSPI index opened the session at 6814.49, down 23.55 points (0.34%) from the previous trading day. Employees are working in the dealing room at the headquarters of Hana Bank in Jung-gu, Seoul. October 1, 2026. Photo by Hyunmin Kim

Micron announced record-breaking quarterly results surpassing market expectations, fueling optimism for the earnings outlooks of Samsung Electronics and SK hynix as well. With the investment boom in artificial intelligence (AI) likely to continue next year, stocks related to memory semiconductors—seen as the biggest beneficiaries—are expected to remain in the spotlight. However, some experts say the upside for these stocks may be limited. They cite two reasons: first, expectations for strong earnings are already reflected in share prices; second, concerns are mounting due to a sharp rise in U.S. Treasury yields.

Micron Announces Record Fiscal Q4 Results Exceeding Expectations

On October 1, the KOSPI opened at 6,814.49, down 0.34% from the previous session, but gradually reduced its decline and was trading up 0.05% at 6,841.74 as of 10:04 a.m. The KOSDAQ also opened down 0.23% at 853.96 but rebounded and was up 1.24% at 866.52 as of 10:06 a.m.

Overnight, U.S. stock markets ended mixed. The Dow Jones Industrial Average and S&P 500 Index fell by 0.86% and 0.25%, respectively, while the technology-heavy Nasdaq Composite rose by 0.24%. U.S. August Personal Consumption Expenditures (PCE) inflation came in below market expectations, leading to early gains. However, as long-term Treasury yields rose, most of these gains were erased.

The PCE price index in August was up 3.4% year-on-year, below the market forecast of 3.7%. Notably, the core PCE price index—which reflects the underlying inflation trend—also came in lower than expected. As a result, there is an assessment that the odds of the Federal Reserve raising interest rates again at the October Federal Open Market Committee (FOMC) meeting have somewhat decreased. However, the yield on the 10-year U.S. Treasury broke through 5.3% during the session—the highest since May 2002—putting downward pressure on the stock market.

Despite Micron’s fiscal 2026 fourth-quarter results, announced after the market closed, beating expectations, its stock traded slightly lower in after-hours trading. Micron reported Q4 revenue of $54.2 billion—nearly five times higher than the same period last year—setting a new all-time high. This represented a 30.8% increase from the previous quarter's $41.46 billion. Adjusted earnings per share (EPS) were $33.42. According to data compiled by Bloomberg, the average analyst forecast was $51.5 billion in revenue and $31.82 in adjusted EPS.

Micron emphasized that, boosted by the enthusiasm for building AI infrastructure, its performance will improve even further next year. The company forecast revenue of about $61.5 billion for the first quarter of fiscal 2027, exceeding the average analyst forecast of $56.8 billion. Adjusted EPS, excluding certain items, was projected at around $38.15, topping market expectations of $36.02.

Micron CEO Sanjay Mehrotra stressed, "We achieved record results in fiscal 2026, and we expect even better performance in fiscal 2027." However, he expected the profit margin to decrease slightly. The adjusted operating profit margin (OPM), which was 87% in Q4, is expected to dip to about 86.25% in Q1.

Suh Sangyeong, Managing Director at Mirae Asset Securities, explained, "While Micron’s Q4 results beat market expectations, EPS failed to meet the whisper number (industry consensus), and adjusted operating expenses were higher than expected. As a result, the stock price fell during after-hours trading."

Heightened Expectations for Earnings from Samsung Electronics and SK hynix

With Micron's results surpassing expectations, anticipation is rising for the third-quarter earnings of Samsung Electronics and SK hynix, which are to be announced this month. According to the securities industry, Samsung Electronics' Q3 operating profit is expected to reach as much as 11 trillion won, marking the first time in Korean corporate history that quarterly operating profit would exceed 10 trillion won. SK hynix is also forecast to post operating profit of 7.7 trillion won.

With earnings expectations reflected in the market, as of 10:08 a.m. Samsung Electronics was trading at 269,500 won, up 0.37% from the previous day. SK hynix was trading up 0.68% at 1,789,000 won. Anticipation about semiconductor industry conditions is especially strong among KOSDAQ-listed semiconductor equipment stocks. Jusung Engineering, the leading semiconductor stock on the KOSDAQ, surged 31% just in the past month, with its market capitalization topping 1.09 trillion won and rising to third place on the KOSDAQ market cap rankings.

Wonik IPS ranked sixth, EO Technics and SimmTech both ranked eighth, and HPSP ranked ninth, meaning that five of the top ten companies on the KOSDAQ are semiconductor equipment firms. Traditionally, top positions in KOSDAQ market capitalization had been occupied by pharmaceutical and biotech stocks such as Alteogen, HLB, and Ligakem Bio, but, with rising interest rates squeezing biotech shares, semiconductor equipment stocks have taken their place.

Kim Jooyeon, a researcher at Mirae Asset Securities, analyzed, "Semiconductor equipment stocks are showing strength thanks to expectations that global semiconductor companies will continue expanding capital expenditures and that demand for AI infrastructure investment will persist."

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