Samsung Electronics and SK Hynix rose for a third straight session on Aug. 13, extending a sharp rebound from their recent selloff as brokerages argued the decline had become excessive and valuations now look attractive. Samsung Electronics closed 4.89% higher at 268,000 won and SK Hynix gained 5.92% to 1.593 million won. Since Aug. 11, the stocks have climbed for three consecutive sessions, leaving Samsung Electronics up 16.52% and SK Hynix up 12.18% versus their Aug. 10 closes. The recovery came alongside improving market sentiment in South Korea, with the Kospi also rising for four straight sessions this week. Foreign investors, who were heavy net sellers last week, switched back to buying through Aug. 13, purchasing 2.5982 trillion won of Samsung Electronics and 1.1984 trillion won of SK Hynix after selling 1.2985 trillion won and 3.5078 trillion won, respectively, the previous week. Morgan Stanley said in its Aug. 6 Asia tech report, titled "Memory - Small Bump," that the sharp correction in memory-chip shares appears to have largely run its course and current levels offer a tactical re-entry opportunity, though it cautioned that DRAM price gains may slow from the fourth quarter as inventories and supply rise. On Aug. 13, the bank also changed its top Asia tech pick to Samsung Electro-Mechanics from Samsung Electronics, saying AI spending may increasingly benefit component makers such as MLCC and semiconductor substrate producers. Local brokerages said slower memory-price growth does not necessarily signal the cycle has peaked. They pointed to broader use of five-year long-term supply contracts, resilient HBM demand and the prospect of expanded shareholder returns as factors that could make earnings more durable and easier to forecast. KB Securities estimated combined operating profit for Samsung Electronics and SK Hynix next year at 964 trillion won, including 575 trillion won for Samsung Electronics and 389 trillion won for SK Hynix, and said their implied forward price-to-earnings ratios based on Aug. 12 closes were only 3.7 times and 3.2 times. Analysts at SK Securities and Daishin Securities said the recent drop failed to reflect the industry's value, while Daishin pointed to next year's server DRAM demand growth of more than 50% from a year earlier as a key marker for a broadening cycle.