NH Investment & Securities projected on September 30 that Samsung Electronics will continue to report stable earnings due to favorable memory market conditions and rising prices for high-bandwidth memory (HBM). The firm maintained a 'buy' rating and a target price of 530,000 won.
NH Investment & Securities estimated Samsung's third-quarter revenue at 200.941 trillion won and operating profit at 105.165 trillion won, representing increases of 133.5% and 764.4%, respectively, compared to the same period last year. The operating profit is expected to surpass 100 trillion won for the first time on a quarterly basis.
The rise in memory prices is also expected to support earnings. The average selling prices (ASP) for DRAM and NAND are projected to increase by 18% and 20%, respectively, compared to the previous quarter. The launch of HBM4 is anticipated to positively impact memory prices as well.
NH Investment & Securities has raised its expectations for HBM. The firm noted that Samsung is leading the market with prices above the average for HBM and suggested that the previously assumed 45% increase in HBM ASP for 2027 may need to be adjusted upward based on recent demand.
Ryu Young-ho, a researcher at NH Investment & Securities, stated, "The increasing demand for CPUs driven by the spread of inference and AI agents is accelerating, which will ultimately lead to higher memory demand. We also expect a reevaluation of shareholder return policies following the third-quarter earnings announcement."
* This article has been translated by AI.
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