Samsung Electro-Mechanics jumped more than 11% early in the session, showing strength. Buying appears to have poured in after the securities industry highly assessed Samsung Electro-Mechanics' competitiveness in the substrate industry and offered an outlook that its position within Nvidia would be strengthened.
As of 9:40 a.m. on the 10th, Samsung Electro-Mechanics was trading at 577,000 won on the Korea Exchange, up 61,000 won (11.82%) from the previous session. It rose to as high as 578,000 won early in the session, hitting a 1-year high.
Meritz Securities on the 10th raised its target price for Samsung Electro-Mechanics by 18.7% to 700,000 won from the previous 590,000 won.
Yang Seung-su, an analyst at Meritz Securities, said, "In the era of embedded printed circuit boards (PCB) that is coming into full swing, it has the only business structure capable of supplying both silicon capacitors and Ajinomoto build-up film (ABF) substrates," and "By being incorporated into the language processing unit (LPU) supply chain, its strategic status within Nvidia in North America is being further strengthened."
Yang also analyzed that the fact Samsung Electro-Mechanics is the only substrate company with passive component supply capabilities could emerge as a structural differentiator.