Disclaimer: This article is for informational purposes only and does not constitute financial advice.
📌 Key Research Highlights
- Broker: Mirae Asset Securities
- Investment Rating: Buy
- Target Price: 400,000 KRW (~$297.92 USD based on 1343 KRW/USD)
- Core Thesis: Historic achievement of $100 billion in semiconductor revenue and a structural supply-demand imbalance favoring memory prices through 2028.
Investment Thesis and Target Price
Mirae Asset Securities maintains a Buy rating and a Target Price of 400,000 KRW (~$297.92 USD based on 1343 KRW/USD). The analyst views the current period as an optimal time to increase weighting (Overweight). The valuation is supported by the company’s achievement of the first-ever $100 billion revenue milestone in the semiconductor industry (specifically memory) and a positive outlook on supply constraints extending into 2028.
Earnings Estimates and Financial Preview
The analyst has revised operating profit estimates upward across multiple periods due to 3Q26 DRAM shipments slightly exceeding expectations:
- 3Q26F Operating Profit: Revised up to 109 trillion KRW (~$81.16B USD) from 106 trillion KRW.
- 4Q26F Operating Profit: Revised up to 119 trillion KRW (~$88.61B USD) from 118 trillion KRW.
- 2027F Operating Profit: Revised up to 543 trillion KRW (~$404.32B USD) from 536 trillion KRW.
Key Semiconductor Drivers and Catalysts
Supply-Side Constraints:
Memory supply-demand is expected to be tighter in 2028 than in 2027. Key factors include the diminishing effects of process miniaturization and an increasing conversion rate to High Bandwidth Memory (HBM). While capital expenditure is increasing, new cleanrooms are slated for operation after late 2028, and 2027 capacity will require several quarters before contributing meaningful shipments. Micron’s outlook suggests industry DRAM bit shipment growth will slow to the low 20% range in 2027, benefiting Samsung, which holds a DRAM capacity of 790K (33.2% market share).
Demand-Side Catalysts:
Agent AI is driving increased CPU utilization, leading to higher adoption of LPDDR, DDR, and SSDs. Server shipments are projected to grow in the high teens for two consecutive years. The analyst notes that any adjustments in memory content per server are not a sign of slowing demand, but rather a strategic move by customers to ship more systems using available memory, limiting any actual decrease in bit demand.
🔗 Original Source: View the official filing/article here.