Chip Supercycle Is Just Beginning, Nomura Says; Targets Samsung at $427 and SK Hynix at $3,623

Nomura Targets Samsung at $427, SK Hynix at $3,623

More analysts are arguing that the semiconductor supercycle is still in its early stages. Goldman Sachs and Nomura Securities have both offered bullish views on the industry, citing rising investment in artificial intelligence.

Goldman Sachs said in a report published on June 11 that demand for AI computing remains in the early phase of growth. The bank also projected capital spending by major hyperscalers will reach $1.1 trillion next year, far above the Wall Street consensus of $920 billion.

Nomura delivered a similar message at a media briefing on South Korea's 2026 economy and stock market held at the Seoul Finance Center in Seoul on June 12. Jeong Chang-won, co-head of Asia research at Nomura, said monthly memory revenue this year is surging to levels never seen before.

"The semiconductor supercycle is only just beginning," he said. He added that AI-driven memory demand is projected to increase by 10,000 to 20,000 times over the next five years.

Beyond semiconductors, Nomura also gave positive outlooks for the defense and auto sectors. Park Se-young, head of Korea research at Nomura, named Samsung Electronics, SK Hynix, Hyundai Rotem, Kia and Samsung SDI as the firm's top picks. On May 20, Nomura set target prices of 590,000 won ($427) for Samsung Electronics and 5 million won ($3,623) for SK Hynix.

Go Song-hee, Hankyung reporter hgsong@hankyung.com