On October 14, analysts in South Korea highlighted that while the pace of memory chip price growth may decelerate, a boost in shipment volumes and an optimized product mix are still anticipated to fuel ongoing corporate profit growth. Given the challenges in swiftly ramping up supply, a moderation in price hikes should not be immediately interpreted as a sign of dwindling profits. Lee Jong-wook and other researchers from Samsung Securities noted that hitting peak profit margins does not necessarily mean profits have reached their zenith, as the current cycle is marked by a prolonged profit phase. On the supply front, memory chip producers face difficulties in substantially increasing production capacity as they did in the past. This is because the production of High Bandwidth Memory (HBM) takes up a portion of the capacity, and expanding the capacity of newly established production facilities takes time. Consequently, the lag between the deceleration in memory chip price growth and the drop in corporate profits is expected to lengthen. Based on these insights, analysts believe that the recent slump in stock prices excessively reflects market anxieties regarding the earnings outlook, and they continue to recommend a ‘Buy’ stance for Samsung Electronics and SK Hynix.