KB Securities raises target to 160,000 won on AI-driven memory demand, foreign firms follow
Amid domestic and foreign securities firms forecasting another AI-driven semiconductor super cycle next year, Samsung Electronics’ target stock price is being successively adjusted upward.
KB Securities raised Samsung Electronics’ target stock price to 160,000 Korean won on the 25th, stating, “Earnings surprises are expected as next year’s operating profit and net profit are projected to double compared to the previous year, reaching 97 trillion Korean won and 88 trillion Korean won, respectively.” This adjustment comes just two trading days after the target was raised to 150,000 Korean won on the 21st, with an additional increase of 10,000 Korean won.
Kim Dong-won, Head of KB Securities Research Headquarters, explained the raised outlook: “As of November, universal memory prices have risen by over 50%, and the fourth-quarter operating profit is expected to approach 20 trillion Korean won, achieving the highest quarterly operating profit in history.” He added, “The possibility of early passage of HBM4 quality certification within the year is increasing.” Accordingly, this year’s and next year’s operating profits for Samsung Electronics were adjusted upward by 8% and 18%, respectively, compared to previous estimates. The semiconductor (DS) division’s operating profit for this fourth quarter is estimated to reach 15.1 trillion Korean won, a fivefold increase compared to the same period last year.
As of the 25th, the highest target stock price for Samsung Electronics among domestic securities firms is 170,000 Korean won (SK Securities), which is 72% higher than the opening price on the 25th.
Foreign securities firms are also successively raising Samsung Electronics’ target stock price. Citi Group recently raised the target from 150,000 Korean won to 170,000 Korean won in a report. Citi Group cited the situation where AI investments are driving demand for memory semiconductors, forecasting, “The actual supply shortage is more severe than market analysis suggests, making it likely that customers will compete to pay premiums to secure supply.” Hong Kong-based CLSA also set a target stock price of 150,000 Korean won for Samsung Electronics in its recent outlook report.
