[Click eStock] "Samsung Electronics, Q4 DRAM Demand Exceeds Expectations"

Increasing Semiconductor Demand from North America's Top 4 Data Companies and Global PC Manufacturers
KB Securities: "Samsung Electronics Stock Price Up 8.1% from Low, One-Third of SK Hynix's Level"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] It has been observed that the increasing demand for DRAM from the four major North American data center companies is exceeding expectations, which is expected to benefit Samsung Electronics. In addition to data center companies, demand from global PC manufacturers is also rising.

According to KB Securities on the 2nd, the demand for server DRAM from the four major North American data center companies, including Amazon, Microsoft, and Meta (Facebook), is exceeding previous forecasts by 30%. This is due to proactive server investments for building metaverse platforms next year and the reduction of DRAM inventory held by server companies from 10-12 weeks in the third quarter to 7-8 weeks in the fourth quarter of this year.

Although semiconductor prices have entered a downward cycle, the four major North American data center companies are steadily increasing their memory semiconductor orders contrary to expectations and are continuously maintaining their increased purchasing power. This implies an expectation that prices may actually rise.

Dongwon Kim, a researcher at KB Securities, explained, “It can be reinterpreted that North American data center companies have a positive outlook on memory semiconductor demand for next year,” adding, “The fact that the inventory of memory semiconductor suppliers, including Samsung Electronics, is below normal levels is also a factor accelerating semiconductor inventory accumulation.”

Not only data center companies but also global PC manufacturers such as Dell and HP have increased semiconductor orders for the first time in seven months. Researcher Kim said, “With some supply chain disruptions for key components, including non-memory semiconductors, being resolved, the forecast for set demand next year has increased,” and “Demand for high-capacity enterprise PCs is also rising sharply.”

Accordingly, KB Securities forecast that Samsung Electronics’ relative investment attractiveness will increase. The closing price on the previous day was 74,000 won, down 10.4% compared to the beginning of the year, and it has only risen 8.1% from the low recorded on October 13. This is about one-third of SK Hynix’s stock price increase rate of 27.3% from its low.

This content was produced with the assistance of AI translation services.