[Click eStock] Samsung Electronics, Highlighted as AI Beneficiary Stock 'Expecting Steady Stock Price Increase'

On the 18th, KB Securities maintained its buy rating and target price of 95,000 KRW for Samsung Electronics. This is because AI memory attacks are expected to begin in earnest from the fourth quarter, raising expectations for a steady stock price increase due to the spotlight on AI beneficiary stocks.

KB Securities revised Samsung Electronics' operating profit for the third and fourth quarters to 2.3 trillion KRW and 4.7 trillion KRW, respectively, reflecting the semiconductor (DS) division's performance, which is 31.7% and 16.2% higher than previous estimates. This represents an increase of 247.4% and 101.8% compared to the previous quarter. Accordingly, the annual operating profit for this year was also adjusted upward by 17.1% to 8.3 trillion KRW. The operating profit for Samsung Electronics in the second half is expected to reach 7 trillion KRW, a 435.7% increase compared to the first half. It is judged that the performance bottom was confirmed in the first half.

Samsung Electronics is highly likely to complete final quality approval for High Bandwidth Memory (HBM) 3 from two North American graphics processing unit (GPU) companies in August and September, raising expectations for full-scale HBM3 supply starting from the fourth quarter of this year. Dongwon Kim, a researcher at KB Securities, said, "Samsung Electronics is the only company that has established a turnkey production system for HBM," adding, "Considering supply stability in the HBM market, where shortages are expected over the next two years, this will act as an advantage in expanding new customers." He continued, "Samsung Electronics' stock price fell 9% over the past month due to concerns about AI memory supply," but added, "However, a steady stock price increase is expected due to the spotlight on AI beneficiary stocks going forward."

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