Morgan Stanley: South Korean Market's Short-Term Pullback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Source: CNBC
- Market Pullback Analysis: The South Korean Kospi index fell about 10% on Tuesday, marking its worst performance since March and becoming the sixth worst trading day on record, indicating signs of a short-term pullback in the market.
- Fundamentals Remain Strong: Morgan Stanley analyst Joon Seok noted that despite memory stocks tumbling due to a global chip crisis, the fundamentals for these stocks remain intact, suggesting that investor pain is unlikely to be long-term.
- Profit-Taking by Investors: With the Kospi surging over 62% in Q2 and nearly 95% in 2026, this pullback is viewed as a brief breather for investors taking profits rather than the onset of a market breakdown.
- Future Outlook: Seok anticipates a bumpier second half of 2026 compared to the first, yet maintains a target of 9,000 for the Kospi, representing nearly a 10% increase from Tuesday's close, reflecting confidence in market recovery.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 1211.380
Low
235.00
Averages
336.12
High
500.00
Current: 1211.380
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Margin Expansion: Micron reported a gross margin of 74.4% in Q2, doubling from 36.8% a year ago, with Q3 guidance at 81%, and while further improvements may be challenging, any increase could drive the stock higher.
- Supply Dynamics: Management indicated that tight supply for data center and AI-related memory will last until 2026, with fulfillment rates for some key customers only at 50%-66%, suggesting significant excess demand and making it difficult to unwind the memory shortage in the coming years.
See More
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- Stock Movements: Cerebras Systems saw an 11% drop after its post-IPO earnings report showed strong revenue growth but a wider-than-expected adjusted loss, while Palantir Technologies hit a fresh 52-week low despite announcing a partnership with Zeta Global, suggesting ongoing demand for AI infrastructure but insufficient investor confidence.
See More
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- Market Rebound: Following the Nasdaq's breach of support, South Korea's Kospi index surged, leading to a rise in futures, indicating a potential recovery in investor confidence that may attract more capital inflows.
- Stock Volatility: FedEx and AI chip company Cerebras experienced significant declines late in the trading session, reflecting market concerns about their future prospects, which could undermine investor confidence in their respective sectors.
- Micron Earnings Watch: With Micron's earnings report on the horizon, the market is keenly focused on its performance, as analysts expect its results to significantly impact the semiconductor industry, potentially prompting a reevaluation by investors.
- Technical Support Levels: The Nasdaq's support level being breached may lead to increased market volatility in the short term, necessitating investors to closely monitor subsequent trends to adjust their investment strategies accordingly.
See More
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See More
