There is a series of forecasts in the securities market that the stock price of Samsung Electronics, the largest stock in Korea by market capitalization and a leading semiconductor stock, will rapidly improve in the third quarter of this year, leading to an upward trend in its stock price.
KB Securities predicted on the 13th that Samsung Electronics will enter a stock price rise cycle in the fourth quarter of this year due to the rise in prices of major memory semiconductors such as DRAM and NAND flash.
Kim Dong-won, a researcher at KB Securities, said, “With the expansion of production capacity for high-value-added products such as high-bandwidth memory (HBM) and double data rate (DDR5), the supply of existing DRAM will decrease, creating a supply-demand imbalance.” He added, “NAND will also decline by 40-50%. “Prices will turn upward for the first time in two years due to production cuts, reduced facility investment, and cessation of price cuts,” he analyzed.
He continued, “DRAM and NAND inventory at the end of the year is expected to decrease by 50-60% compared to the second quarter, so it will be close to normal levels.” He added, “There is a high possibility of reversal of memory semiconductor inventory valuation losses worth 3 trillion won accumulated from the fourth quarter, so performance “It will serve as a factor in raising the estimate,” he predicted.
He analyzed, “In the memory semiconductor market, the supply and demand imbalance due to supply reduction will become a reality starting from the end of the fourth quarter, and the slope of the stock price upward cycle will develop steeply starting next year.”
Researcher Kim said, “Samsung Electronics is expected to start메이저놀이터 supplying HBM turnkey (batch production) from the third quarter of next year, so the number of orders is expected to increase significantly compared to HBM’s individual supply.” He added, “In addition, GDDR7, which is optimized for expansion of artificial intelligence (AI) server applications, “Production of next-generation memory products such as XCL is expected to begin in earnest next year, which will serve as a strength in expanding new customers,” he predicted.
He maintained Samsung Electronics’ existing investment opinion of ‘buy’ and target stock price of 95,000 won. KB Securities predicted Samsung Electronics’ operating profit in the third and fourth quarters of this year to be 2.3 trillion won and 4.7 trillion won, respectively.
Kim Un-ho, a researcher at IBK Investment & Securities, said, “We expect operating profit to increase to KRW 1.47 trillion in the third quarter as sales of most of Samsung Electronics’ business divisions increase compared to the second quarter.” He added, “However, in the case of semiconductors, the cost structure will worsen due to production cuts “It is unlikely that the operating loss will be reduced significantly as the product mix improvement effect is not significant,” he said.
At the same time, he suggested a target price of 90,000 won, saying, “A significant improvement in operating profit is possible starting from the 3rd quarter, the proportion of HBM will increase from the 3rd quarter, and the possibility of entering the HBM3 market is high, so momentum for performance improvement will increase, so we maintain a buy opinion.”
Meanwhile, according to financial information company FnGuide, the consensus target stock price for Samsung Electronics among domestic securities firms is 91,364 won.