Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
Hyundai Motor Securities maintains a Buy investment rating for Samsung Electronics with a 6-month Target Price of 440,000 KRW (~$310.74 USD based on 1416 KRW/USD). This valuation is derived from the arithmetic mean of a 10x 2026F P/E and a 3x 2026F P/B. The brokerage suggests a ‘Buy & Hold’ strategy, citing strong earnings momentum and the potential for expanded shareholder return policies.
Earnings Estimates and Financial Preview
For the second quarter, Samsung Electronics reported consolidated revenue of 171.5 trillion KRW (~$121.12B USD), a 28.1% increase QoQ, and operating profit of 89.5 trillion KRW (~$63.21B USD). The DS (Device Solutions) division was the primary driver, contributing 89.2 trillion KRW (~$63.00B USD) to operating profit. For the third quarter, revenue and operating profit estimates have been revised upward by 2.3% and 4.1% respectively to 209 trillion KRW (~$147.60B USD) and 114 trillion KRW (~$80.51B USD). Full-year 2026 forecasts indicate revenue of 739.7 trillion KRW (~$522.39B USD) and operating profit of 388.6 trillion KRW (~$274.43B USD).
Key Semiconductor Drivers and Outlook
The primary catalyst is the expected expansion of High Bandwidth Memory (HBM) market share, with HBM4 expected to contribute significantly to revenue starting in the third quarter, specifically targeting major accelerator firms such as NVIDIA and AMD. Consequently, the DRAM ASP growth forecast for Q3 has been revised upward to +20.1% QoQ. While the market has expressed concerns regarding AIDC Capex reductions among North American CSPs and price resistance in consumer products, the brokerage views the current cycle more positively than the 2017-2018 cloud cycle due to the diversification of demand sources, including Neo Cloud providers and LLM developers investing directly in AIDC.
🔗 Original Source: View the official filing/article here.