[Click eStock] "Samsung Electronics Named Top Pick in Semiconductor Sector"

On August 21, KB Securities named Samsung Electronics as its top pick in the semiconductor sector. The target price of 90,000 won was maintained.

Kim Dongwon, a researcher at KB Securities, projected Samsung Electronics' estimated operating profit for the second half of this year at 18 trillion won. This figure represents a 14.8% increase compared to last year and is expected to reach the highest level in four years since the second half of 2021. He explained that this is due to the faster-than-expected improvement in the performance of the semiconductor (DS), smartphone (MX), and display (DP) divisions.

Kim predicted, "The second half of this year is likely to be a turning point for Samsung Electronics, as domestic and external risks begin to clear."

He added, "The U.S. Department of Commerce's review of acquiring a stake in Samsung Electronics could strengthen ties with the U.S. government, potentially easing political risks such as tariffs. In addition, better-than-expected results from NVIDIA's HBM4 sample tests and the shift in the HBM market structure from supplier-driven to demand-driven by 2026 are expected to increase the potential for expanded supply to NVIDIA, thereby reducing uncertainties in Samsung's HBM business for NVIDIA."

He continued, "The foundry business, which has recorded losses for three consecutive years, is now seen as having reached a turning point for a mid- to long-term earnings recovery, thanks to a new 23 trillion won order from Tesla and new image sensor supplies for Apple's iPhone, which are expected to boost utilization rates. This is likely to serve as a factor for valuation improvement going forward."

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