Samsung Electronics Draws 500,000-Won Calls as AI Memory Boom Lifts Targets

Expectations Build on Memory-Sector Boom

May 8 close at 268,500 won after roughly 20% surge in a week

SK Securities sets 500,000-won target, citing structural shift in AI memory demand

Investor focus is turning to whether Samsung Electronics Co. can reach 500,000 won a share as brokerages lift their target prices, with one report valuing the stock at that level.

According to Korea Exchange data, Samsung Electronics closed at 268,500 won on the Kospi on May 8, down 3,000 won, or 1.1%, from the previous session. The stock opened at 260,000 won and traded as high as 270,000 won during the day. Market capitalization was about 156.97 trillion won.

The stock eased on the day, but its weekly performance remained strong. Samsung Electronics opened at 228,000 won on May 4 and rose to 268,500 won by the close on May 8, a gain of about 17.8%. Compared with the April 30 close of 220,500 won, the May 8 close was about 21.8% higher.

The rally has been driven by rising earnings forecasts. Samsung Electronics reported first-quarter revenue of 133.8734 trillion won and operating profit of 57.2 trillion won. It was the first time quarterly revenue topped 100 trillion won and operating profit exceeded 50 trillion won. Its Device Solutions semiconductor division posted revenue of 81.7 trillion won and operating profit of 53.7 trillion won.

Brokerages are focused on rising memory prices. DS Investment & Securities forecasts Samsung Electronics' second-quarter operating profit at 79.3 trillion won. It projects average selling prices for DRAM will rise 30% from the previous quarter and NAND prices will increase 41%. The firm wrote that sharp gains in NAND prices and margins from the second quarter, along with expanded HBM4 volumes in the second half, would support continued growth in operating profit.

Target-price increases are also gathering pace. According to Hankyung Epic AI, the highest target was 500,000 won from SK Securities, while the lowest was 250,000 won from SangSangin Securities. The wide gap reflects differing views on how long memory-price gains will last, the AI investment cycle and when supply shortages may ease. The average target price is 323,000 won, implying about 20% upside from the current level of 268,500 won.

SK Securities, the most bullish brokerage, said in a semiconductor report on May 7 that Samsung Electronics' operating profit would reach 338 trillion won in 2026 and 494 trillion won in 2027.

The brokerage said the recent rally in memory shares reflects more than a simple supply shortage and instead points to a structural shift driven by expanding AI demand. "The recent rally is based on confidence in a structural improvement in earnings power," the report said. "If the nature and status of memory demand have changed, valuation methodologies should change as well."

Other brokerages have also raised their targets. Yuanta Securities increased its target for Samsung Electronics to 340,000 won from 330,000 won. KB Securities raised its target to 360,000 won from 320,000 won, while Korea Investment & Securities lifted its target to 330,000 won from 270,000 won. Daol Investment & Securities also increased its target to 350,000 won from 290,000 won.

Risks remain. After the recent sharp rally, profit-taking pressure could build. Investors are also watching the possibility of a labor union strike and concerns about disruptions to HBM supply. DS Investment & Securities cited strike concerns and the possibility of additional provisions, but said any production disruption from a short-term walkout would be limited and could instead support prices by tightening supply.

Lee Song-ryul, Hankyung.com reporter yisr0203@hankyung.com