[Click e-Stock] "Samsung Electronics Has Ample Room for Further Gains"

by Lee Seungjin

Published 17 Sep.2025 07:51(KST)

On September 17, KB Securities stated that Samsung Electronics' stock still has ample room for further growth despite its recent rise. This outlook is based on expectations that the company will directly benefit from expanding demand for artificial intelligence (AI) memory.

Kim Dongwon, a researcher at KB Securities, explained, "Since September, demand for DRAM and NAND, particularly for servers and mobile devices, has been increasing at a rate significantly exceeding expectations." He analyzed, "For general servers, replacement demand emerged in 2023 after cloud investments in 2018, but as investments have been concentrated in AI servers, replacements have been delayed for seven years."

[Click e-Stock] "Samsung Electronics Has Ample Room for Further Gains"

He continued, "In the case of mobile devices, the industry has entered the peak season for new product launches in the second half of the year, leading to higher memory adoption compared to previous models, while demand for enterprise SSDs (eSSD) is also showing improvement." He added, "As HDD prices rise and the price gap with SSDs narrows, server customers are increasing orders for highly reliable eSSDs."

Researcher Kim predicted an increase in memory prices. He said, "According to foreign media reports, companies such as Micron, Western Digital, and SanDisk are expected to raise memory prices for each product by 10 to 30 percent based on demand forecasts from major customers." He explained, "With full-scale replacement demand for general servers, demand for general-purpose memory is increasing significantly, and this replacement demand is likely to continue through next year."

Kim assessed, "Going forward, Samsung Electronics' stock price is expected to enter a range where it will be highly sensitive to positive catalysts." He cited several reasons: securing productivity for 1c DRAM-based HBM4 is expected to expand Samsung's share in supplying HBM to Nvidia in 2026; the company is expected to directly benefit from expanding AI memory demand, such as LPDDR5X and GDDR7, based on its robust general-purpose memory production capacity; and the stabilization of 4nm foundry production yields is expected to improve foundry profitability through higher utilization rates.