JPMorgan Asset Management’s global head of equities, Paul Quinsee, suggests semiconductor memory stocks may be on the cusp of a significant rebound. Investors have offloaded shares in recent months over concerns about substantial AI spending. While AI firm Anthropic’s recent initial public offering filing helped ease some market apprehension and boosted major memory companies, South Korea’s Samsung and SK Hynix remain over 40 per cent down from June peaks. Similar declines have affected Wall Street-listed Micron, Sandisk, Seagate, and Western Digital. Mr. Quinsee drew parallels to the “SaaSpocalypse” for software stocks, which rebounded sharply, stating, “Investors changing sentiment is going to create opportunities.”
Australian-based Atlassian offers a compelling example of such a rebound. Atlassian is a software company that develops collaboration and productivity software products for teams. Its shares plummeted 60 per cent on the Nasdaq before surging almost 300 per cent. Quinsee noted, “Right now, the memory semiconductor stocks are on sale. That could be another opportunity.” This positive outlook emerges despite immense pressure on the broader AI trade, including the failed float of Firmus on the ASX, AirTrunk postponing its S$4 billion listing, and $3 billion wiped from NextDC’s value after expansion delays.
The Anthropic prospectus, highlighting rapid AI growth, provided a much-needed sentiment boost amid concerns about valuations and debt. However, Mr. Quinsee cautioned, “We believe in AI. We think the rollout will continue, but the risks along the way are also quite significant,” citing physical, supply, and political constraints. Following Anthropic’s filing, Samsung and SK Hynix shares climbed over 4 per cent in South Korea. This contrasts with Goldman Sachs analyst Timothy Moe’s recent 25 per cent cut to his 12-month target for the South Korean sharemarket, a global bellwether for the AI trade, attributing it to an “overly negative fundamental outlook.”
