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South Korea's KOSPI stock index has confidently returned to a bull market phase, showing a gain of more than 20% from July lows. The key driver of this powerful rebound has been the recovery of memory semiconductor manufacturers' stocks, signaling a shift in market sentiment.

On Thursday, Sandisk (SNDK) shares surged 13.7% after the company published an ambitious long-term forecast, instantly triggering a wave of buying across the entire sector. This momentum carried into Friday's Asian trading, setting the tone for the whole region.

Sandisk's strategy as a growth catalyst

Sandisk shares closed at $1528.11 after top management presented a revenue growth strategy through 2030. The company is targeting mid- to high-double-digit revenue growth rates while maintaining an adjusted gross margin of around 80%. CFO Luis Visoso also announced a capital return program for shareholders.

"We are positioning the business for growth, resilience, and returns. With this approach, all excess cash flow after investments in development will be returned to shareholders," he said.

Amit Daryanani of Evercore ISI highlighted new long-term agreements totaling $93.9 billion, including three contracts with the largest data center operators in the U.S. It is this solid customer base that underpinned his "buy" recommendation.

A wave of gains across the sector

The rally quickly spread to other companies. Micron (MU) shares rose 4.2%, and SK Hynix (SKHY) gained 7.3%. Hard drive manufacturers Seagate (STX) and Western Digital (WDC) added 4.9% and 7.3%, respectively. On Friday, positive momentum continued in Asia: Japan's Nikkei 225 climbed 1.73%, the Topix rose 0.92%, and the KOSPI gained 2.11%. The small-cap KOSDAQ index, which had previously shown resilience even during the downturn, added another 0.84%.

Notably, the KOSPI broke through the 7000-point level for the first time in 15 trading sessions.

How sustainable is the current bull trend?

However, not all market participants share the optimism. Peter Kim of KB Securities attributes the earlier decline more to technical factors and capital rotation rather than concerns over semiconductor manufacturers' profitability. In his assessment, forced liquidation of credit positions is already subsiding.

Jeong In Yun of Fibonacci Asset Management Global is more cautious.

"I wouldn't call this a fully new bull market," he emphasized.

The index has gained more than 10% over five trading days ahead of the long weekend in South Korea, and an influx of foreign money could hold the 7000 level. Further momentum will depend on how long the optimism around Sandisk's forecast can support the rest of the memory sector companies.

My view: The market is clearly oversold after the July crash, and the current rebound looks technically justified. However, the sustainability of this rally will depend on real macroeconomic data and the ability of companies to back up their ambitious forecasts with actual results. Investors should remain cautious and not give in to the euphoria of the first days.