Samsung Electronics hit an all-time high on expectations for a semiconductor "supercycle." As foreign buying flowed in even after the stock set a record, some experts said Samsung Electronics could rise to 160,000–170,000 won. Thanks to that, individual investors who invested early in Samsung Electronics are making considerable revenue.
Samsung Electronics on the 26th ended regular-session transactions at 117,000 won, up 5,900 won (5.31%) from the previous trading day. It finished trading after setting a new all-time high that day.
Japan's Nomura Securities issued a report saying Samsung Electronics' profit will increase sharply, drawing a large inflow of foreign funds. Nomura Securities explained, "As prices for both commodity DRAM and NAND rose sharply in the fourth quarter, profitability in Samsung Electronics' memory institutional sector is improving rapidly," adding, "For commodity DRAM, prices are estimated to have risen 30%–40% in the fourth quarter, and server DRAM 40%–60%."
Domestic securities firms are also raising their expectations for Samsung Electronics. Recently, SK Securities made an aggressive 55% hike in its target, from 110,000 won to 170,000 won, and 10 firms including KB Securities (150,000→160,000 won), Mirae Asset Securities (142,000→155,000 won), Hana Securities (140,000→155,000 won), Hanwha Investment & Securities (110,000→140,000 won), and Meritz Securities (120,000→125,000 won) raised their target prices in succession.
According to the securities industry consensus (average estimate), fourth-quarter sales and operating profit this year are expected to be 88.2192 trillion won and 15.6965 trillion won. That would be up 16.4% and 141.8%, respectively, from a year earlier.
Kim Dong-Won, an analyst at KB Securities, said, "As application-specific integrated circuit (ASIC) firms such as Google, Amazon, and Microsoft increase orders for HBM3E, the fifth generation of high bandwidth memory (HBM), the likelihood of entering Nvidia's HBM4 supply chain in the first half of next year is growing," adding, "Samsung Electronics' HBM sales next year are expected to reach 26 trillion won, three times the prior year, and total operating profit is expected to reach 100 trillion won."
Individual investors who bought shares when Samsung Electronics traded below 100,000 won have booked considerable investment gains. According to the NH Investment & Securities Namu app, as of the 23rd the average purchase price for retail investors was 76,314 won, with an average return of 51.28%. The share of loss-making investors is 0%.
Some individuals realized profits this month (1–26) by selling 3.8909 trillion won worth of Samsung Electronics shares. Over the same period, foreign investors were net buyers of 2.9601 trillion won in Samsung Electronics, and institutions 1.7486 trillion won.
Some say Samsung Electronics' stock is still undervalued. Kim Rok-Ho, an analyst at Hana Securities, said, "On next year's basis, Samsung Electronics' price-earnings ratio (PER) is 7.6 times and price-to-book ratio (PBR) is 1.4 times, which is still undervalued," adding, "With the DRAM cycle continuing and HBM demand sources diversifying, there is no reason for it to be undervalued."
There are also views that for Samsung Electronics' stock to rise further, additional investments and shareholder return plans need to be announced along with foreign fund inflows. Ryu Hyeong-Geun, an analyst at Daishin Securities Co., said, "To build a portfolio suited to the age of artificial intelligence (AI), investment is necessary, and to address the so-called 'derating' phenomenon in which the stock is undervalued relative to corporate results, shareholder returns also need to be strengthened."
Ryu said, "To achieve two conflicting goals at the same time, a structural shift toward profit-making memory semiconductors is needed," adding, "To reduce cycle volatility, Samsung Electronics is expected to increase the share of long-term supply contracts in 2027–2028."