Samsung Electronics Soars in Short Term... Now Above 200,000 Won, Is It Still a Good Buy? [Weekend Money]

Operating Profit Forecast to Reach 220 Trillion Won This Year, a Fivefold Increase Over Last Year
Semiconductor Shortages Expected Until 2027; Target Price Set at 320,000 Won

Securities analysts have reported that Samsung Electronics is entering a phase of significant earnings growth, driven by improvements in the memory semiconductor sector. While inventory levels have dropped to historic lows, demand is surging, leading to expectations of a prolonged supply shortage.

KB Securities has maintained its target price for Samsung Electronics at 320,000 won and its investment rating of 'Buy', stating that there is ample room for further upside.

Dongwon Kim, a research analyst at KB Securities, stated, "As of March, memory semiconductor inventories are at just 1 to 2 weeks' supply, marking the lowest level since 2018. Meanwhile, demand is soaring, especially for general DRAM and enterprise SSDs, and it is estimated that memory products are effectively sold out through next year."

Accordingly, memory prices are expected to rise sharply. Kim explained, "In 2026, DRAM and NAND prices are projected to increase by 148% and 111%, respectively, compared to the previous year."

Samsung Electronics is also expected to show a steep improvement in performance. For the first quarter of this year, operating profit is estimated at approximately 40 trillion won, a sixfold increase year-on-year, while the second quarter is projected at 51 trillion won, up elevenfold. Quarterly earnings surprises are expected to continue. On an annual basis, operating profit for 2026 is estimated to reach 220 trillion won, representing a fivefold increase from the previous year.

By product, increased demand for server applications is expected to drive results. Kim noted, "DRAM operating profit is expected to reach 163 trillion won, up sixfold from the previous year, with an operating margin of 74%, while NAND is estimated at 47 trillion won, a twenty-twofold increase, with an operating margin of 58%, driven by expanding eSSD demand."

This boom is likely to persist beyond a short-term cycle and continue over the medium to long term. Kim stated, "Customers are already inquiring about supply volumes for 2028. The tight supply-demand environment previously expected through 2027 will likely extend until 2028."

He added, "With the increased share of HBM production and process conversion for DRAM, production process lead times have increased by more than three to four times, making it realistically difficult to expand short-term production capacity within the next two years."

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