The domestic stock market has been buzzing since Monday morning with the rise of semiconductor stocks. Samsung Electronics and SK Hynix shares saw a strong rebound right as the market opened. The reason investors, who have been cautious since the sharp sell-off at the end of last month, are now on edge is a single unexpected report that has shifted the market sentiment overnight.

The trigger for this momentum is none other than the global investment bank Morgan Stanley. Known among local investors as the 'Semiconductor Grim Reaper' for its consistently cold outlook on the memory semiconductor market, Morgan Stanley completely flipped the narrative over the weekend. A newly released report declared that the 'steep correction phase for memory stocks is over' and urged investors to see this as an active opportunity to re-enter the market.

In the report titled 'Memory—A Little Hiccup,' Morgan Stanley's chief analyst Shawn Kim characterized the recent stock price drop not as a structural downturn, but as a temporary ripple amidst a super-cycle driven by AI. He cited robust infrastructure investment in High Bandwidth Memory (HBM) and strong shareholder return policies as the basis for this view. While maintaining the target prices for Samsung Electronics and SK Hynix, the note emphasized that the current over-sold position is a tactical entry point with significant upside potential, which has strongly stimulated market sentiment.

Of course, there are voices urging caution, noting it is still early to fully trust the 'Grim Reaper's' change of heart. While Morgan Stanley raised its earnings outlook for SK Hynix, it lowered its outlook for Samsung Electronics, indicating that their calculations for individual firms remain mixed. Nevertheless, the fact that the very entity that had been issuing harsh warnings is the first to shift its stance is acting as a massive relief for the market. It will be worth keeping a calm eye on market movements this week to see if this rise is merely a short-term technical rebound or a genuine signal of a new upward trajectory.

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