Leading brokerages are significantly upgrading their earnings forecasts and raising price targets for **Samsung Electronics**. This optimistic outlook is fueled by robust momentum in **AI-driven memory demand** and increasing confidence in **long-term supply contracts** with prominent global technology companies.
On Tuesday, **KB Securities** notably increased its 2026 operating profit forecast for **Samsung Electronics**, establishing a new target price of 360,000 won ($245). This valuation positions it among the most ambitious projections from local investment firms.
According to Kim Dong-won, head of research at KB Securities, the increasing requests from **Big Tech firms** for five-year, **long-term agreements** clearly indicate a sustained **structural supply shortage in memory** components projected to last until 2030. This underscores the critical demand for advanced memory solutions.
Kim further elaborated, stating, “**Strategic collaboration** with major clients, even from the initial phases of **AI memory development**, is intensifying. The entire **memory industry** is gradually evolving towards a **foundry-like structure**.” He suggested that this shift could lead to a significant mid- to long-term **valuation rerating** for companies like **Samsung Electronics**.
He additionally pointed out that **Samsung shares** continue to be **undervalued**, currently trading at approximately 4.5 times forward price-to-earnings and 1.7 times price-to-book ratios. Kim asserted that anxieties regarding peak earnings are premature, given the substantial **upside potential** in the semiconductor market.
**NH Investment & Securities** has also revised its operating profit estimate for **Samsung Electronics** upwards, increasing its target price from 260,000 won to 290,000 won, reflecting similar positive sentiment.
Analyst Ryu Young-ho emphasized that these **long-term contracts** represent more than mere pricing mechanisms. Instead, they should be perceived as **strategic agreements** that mirror the escalating complexity in **data center hardware planning** and the crucial alignment required between **suppliers and customers** in the rapidly evolving tech landscape.
He concluded, “The intricate details of these **contracts** are poised to become a pivotal **key variable** significantly influencing **Samsung’s share price** in the foreseeable future.”
**Daol Investment & Securities** also elevated its **target price** for **Samsung Electronics**, moving it from 290,000 won to 350,000 won, albeit adopting a slightly more **cautious stance** compared to its peers.
Analyst Ko Young-min noted that while **long-term agreements** might not entirely guarantee stable midterm cycles for **conventional memory products**, they nonetheless offer crucial support given the prevailing market conditions for semiconductors.
Ko explained, “Customers are currently accommodating **elevated memory prices**, but there are inherent limits to this absorption.” He added, “Establishing clear **quarterly price ranges** greatly enhances market visibility, and we anticipate continued **upside in prices** at least through the end of the year.”
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