HomeArticlesServicePriceAbout

Morgan Stanley, which had maintained a conservative outlook on the semiconductor market, has now raised its target prices for Samsung Electronics and SK Hynix. With DRAM and NAND flash prices rebounding and production cuts by major players taking effect, expectations for gradual market recovery are growing.

In a report, 'DRAM-Looking beyond the valley' released on March 18, Morgan Stanley increased its target price for Samsung Electronics from 65,000 KRW to 70,000 KRW and for SK Hynix from 150,000 KRW to 230,000 KRW. While Samsung retained its "Overweight" rating, SK Hynix’s rating was upgraded from "Underweight" to "Neutral".

The semiconductor market is seeing the full impact of NAND flash production cuts, with prices expected to rise by up to 10% in Q2. Additionally, China’s AI investment and economic stimulus policies are expected to positively impact DRAM supply and demand. However, weak consumer sentiment and intensifying price competition from Chinese semiconductor firms could challenge the sustainability of the current uptrend.

Morgan Stanley sees greater upside potential in Samsung Electronics compared to SK Hynix. While HBM (High Bandwidth Memory) market growth is already priced in, Samsung is expected to benefit more from NAND production cuts and a slower decline in DRAM prices, leading to a clearer earnings recovery.

[Compliance Note]

• All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.

• The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.

• Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.