KB Securities said on the 20th that for Samsung Electronics, the stock's rise over the past month was about half that of rivals as uncertainty over a strike and bonus calculations was priced in, adding that related concerns have been largely reflected in the share price. It maintained a Buy rating and a target price of 450,000 won. Samsung Electronics' previous closing price was 275,500 won.

On the afternoon of the 19th, as the KOSPI closes down more than 3%, the dealing room ticker at Hana Bank's headquarters in Jung-gu, Seoul displays the closing prices of the KOSPI, Samsung Electronics, SK hynix, and Hyundai Motor. /Courtesy of News1

KB Securities expected Samsung Electronics to post record-breaking results again in the upcoming second quarter.

Kim Dong-Won, head of research at KB Securities, said, "As of the second quarter, artificial intelligence (AI) data center companies are absorbing 70% of total memory shipments, while customers' memory demand fulfillment remains at about 60%," adding, "In particular, memory prices in the second and third quarters are likely to exceed previous market expectations, leaving ample room for upward revisions to earnings estimates."

There are concerns about a strike at Samsung Electronics, but the pace of earnings improvement is expected to strengthen.

At the same time, it projected Samsung Electronics' second-quarter operating profit at 90 trillion won, a 19-fold surge from a year earlier. The operating margin was estimated at 51%.

Kim said this is "because second-quarter memory prices are estimated to rise more than 50%, led by server DRAM and enterprise solid-state drives (SSD), significantly beating market expectations."

In particular, from the third quarter, quarterly operating profit is projected to exceed 100 trillion won.

Also, considering the first-quarter increase in token usage at the four North American big tech companies, token usage is estimated to triple within the next six months and expand sevenfold on a one-year basis.

Kim said this "means competition among cloud operators to secure memory capacity is intensifying."

In the case of Samsung Electronics, it is pursuing long-term memory semiconductor supply contracts from 2028 to 2030. From the second half of this year, it was projected to shift to a build-to-order, post-production business structure.

Kim said this "reduces earnings volatility and enhances visibility, serving as a direct driver for a valuation re-rating."

In particular, as big tech's AI capital spending is taking root not as a mere expense but as a strategy to build entry barriers for survival, memory semiconductors are likely to be recognized as a core strategic asset that determines overall AI system performance.

Kim said, "Samsung Electronics' share price is fluctuating on strike concerns, but the strength of earnings improvement is actually increasing," adding, "The resolution of uncertainty ahead is expected to act as a powerful catalyst for a rebound."

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