Samsung 2quarterly operating profit 100trillion won outlook widens market-cap gap
Brokerages forecast Samsung Electronics’ 2quarterly operating profit at 100trillion won, and SK hynix’s at 71trillion won. Brokerage price targets have been raised amid sharp increases in DRAM and NAND prices, and market attention is shifting from HBM toward mainstream DRAM, NAND, and foundry operations.
Brokerage forecasts put Samsung Electronics’ 2quarterly operating profit at 100trillion won and SK hynix’s at 71trillion won. Based on these forecasts, many brokerages raised their price targets for both companies. They cited the steep rise in DRAM and NAND prices as grounds for the increases.
The report said DRAM prices rose 55% and NAND prices surged 70%. These price trends were assessed as signs of a recovery in the memory market. The report noted that the pattern of benefits, previously limited to HBM, is changing.
Market attention is moving away from its focus on HBM. Analysts said the range of beneficiaries is broadening to include mainstream DRAM, NAND, and foundry performance. The report said Samsung Electronics is drawing attention as a beneficiary of this broader trend.
Brokerages maintained or strengthened their buy ratings on Samsung Electronics, citing its foundry and commodity memory portfolio. SK hynix was seen as retaining its strengths in HBM and high-performance memory for servers. Price-target revisions for both companies continued in the market.
The report noted that these shifts in supply and demand had widened the market capitalization gap between the two companies again. It explained that the changes in market capitalization reflected memory prices and earnings expectations. Investment decisions were said to depend on future earnings announcements and price trends.
The report was issued 6early in the month. It recommended checking average memory selling prices and foundry utilization in upcoming quarterly earnings announcements. The report concluded that short-term price movements and earnings announcement schedules should be considered together.
Sources: 연합인포맥스
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.