[Click eStock] "Samsung Electronics to Enter HBM Premium Segment from 4Q"

On the 4th, KB Securities maintained its 'Buy' rating and target price of 95,000 KRW for Samsung Electronics, forecasting that the stock price will enter the high-bandwidth memory (HBM) premium range starting from the fourth quarter of this year.

Dongwon Kim, a researcher at KB Securities, stated, "It is estimated that Samsung Electronics recently completed the final quality approval of HBM3 from Nvidia and AMD, and HBM3 supply is expected to begin from the fourth quarter." He added, "Additionally, Samsung Electronics is expected to supply samples of the 5th generation HBM product, HBM3P, to Nvidia and AMD in the fourth quarter of this year, which will rapidly narrow the market share gap with competitors." He further noted, "Especially, new HBM3 supplies are expected to global data center companies, and next year, Samsung Electronics' HBM3 customers are expected to increase to up to 10 companies, more than doubling compared to this year."

Samsung Electronics is the only company that has established a turnkey (all-in-one) production system for HBM, from design and manufacturing to 2.5D advanced packaging, which is expected to highlight its advantage in expanding market share in the HBM market, where supply shortages are anticipated over the next two years. Researcher Kim said, "Samsung Electronics' turnkey supply method is a positive factor for customers concerned about supply stability in the increasingly tight HBM market," and added, "Next year, Samsung Electronics' HBM3 supply share is estimated to be 35% for Nvidia and 85% for AMD."

Considering the expansion of HBM market share, the stock price is expected to have a high possibility of surpassing its previous peak. Researcher Kim said, "Since the beginning of the year, Samsung Electronics' stock price increase rate has been less than half compared to competitors (60%) due to concerns about securing HBM3 customers, resulting in a discounted valuation," and forecasted, "With the number of HBM3 customers expected to expand to up to 10 next year, Samsung Electronics' stock price will enter the HBM premium range starting from the fourth quarter." He added, "Considering both the expansion of HBM market share and the improvement in foundry performance, there is a high possibility of surpassing the previous peak (91,000 KRW on January 11, 2021)."

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