[Featured Stock] Samsung Electronics Expected to Enter 'Value-Up' Phase with HBM3E and Earnings Improvement

Samsung Electronics' stock price is on the rise. Expectations that it will enter a 'value-up' phase due to the supply of High Bandwidth Memory (HBM) 3E and improved performance this year appear to be influencing the stock price.

At 11 a.m. on the 21st, Samsung Electronics was trading at 78,600 KRW, up 2.21% from the previous day. This follows a rise of more than 5% in the previous trading session, with additional gains observed.

Dongwon Kim, a researcher at KB Securities, analyzed, "Starting from the third quarter of this year, shipments of HBM3E are expected to begin, leading to new supply. Significant performance improvements are anticipated due to increased orders for legacy memory such as mobile and PC, price increases, and the reversal of inventory valuation losses on the order of trillions of won."

The large-scale merger and acquisition (M&A) expected for the first time in seven years since the acquisition of Harman in 2017 is also a positive factor. Researcher Kim added, "Samsung Electronics is reportedly considering acquiring the German Continental division (ADAS) to strengthen its automotive sector. The automotive business, which has been focused on infotainment, could expand into the high-performance computing chip field, and production of customized auto chips including Exynos Auto may increase. This is expected to have a positive impact on the foundry business."

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