Samsung Electro-Mechanics overtook Hyundai Motor to rank fourth by market capitalization on the main bourse, excluding preferred shares. The stock rose to 2 million won intraday. Expectations for an upturn in the semiconductor components cycle, led by multilayer ceramic capacitors (MLCC), continue, and the stock's strength shows little sign of easing.
As of 9:46 a.m., Samsung Electro-Mechanics was trading at 1,991,000 won on the main bourse, up 142,000 won (7.68%) from the previous session. Its intraday market capitalization climbed to 148.7151 trillion won, surpassing Hyundai Motor's market cap.
A semiconductor rally fueled by expanded investment in artificial intelligence (AI) is spreading beyond memory chips to high value-added electronic components such as MLCCs and flip-chip ball grid array (FC-BGA) substrates. AI servers require far more MLCCs and high-spec semiconductor substrates than general information technology (IT) devices.
Hyundai Motor Securities raised its target price for Samsung Electro-Mechanics to 2.3 million won, up 123% from the previous target.
Kim Jong-bae, an analyst at Hyundai Motor Securities, said, "As demand for MLCCs for AI servers spreads across the global MLCC market, an industrywide increase in utilization is structurally unavoidable," and added, "FC-BGA is effectively running at full capacity, with second-half volumes pulled forward at the request of clients, and most of the expansion volume has already been sold through 2027, so long-term growth should continue."