KB Securities said on the 11th that for Samsung Electronics, semiconductor operating profit in the fourth quarter of this year (October–December) will jump fivefold from a year earlier, extending the profit surge cycle.
It kept a "buy" rating and a target price of 160,000 won. The previous trading day's closing price of Samsung Electronics was 108,000 won.
Kim Dong-Won, head of research at KB Securities, said, "In the fourth quarter, semiconductor operating profit is expected to increase fivefold from a year earlier, signaling entry into a profit surge cycle," and noted, "For next year, high bandwidth memory (HBM) shipments are expected to triple from a year earlier, outpacing the global HBM market's shipment growth rate by sixfold."
KB Securities estimated that Samsung Electronics will post sales of 91 trillion won and operating profit of 19 trillion won in the fourth quarter of this year. Operating profit would be up 192% from a year earlier, well above market expectations. In particular, fourth-quarter semiconductor operating profit is projected at 15 trillion won, five times the level of a year earlier.
Kim said, "As of the fourth quarter, DRAM customers' demand fulfillment is at 60%, and server DRAM demand fulfillment is below 50%," explaining, "DRAM prices driven by severe supply shortages are expected to far exceed market expectations."
He added, "In the first quarter of next year, Samsung Electronics will begin mass production of HBM4, and from the second quarter, HBM4 shipments are expected to increase sharply," and said, "Demand from ASIC firms for HBM4 adoption via Broadcom will rise, and shipments of HBM4 to be installed in Nvidia Rubin will begin in earnest."