"Should I still buy now?" Securities firms predict '400,000 won Samsung, 2 million won SK hynix'

[Financial News] Analysts in the securities industry are projecting that the share prices of Samsung Electronics and SK hynix could nearly double from their current levels.
They expect the favorable semiconductor cycle to settle into a long-term growth trend, rather than remaining a temporary upswing.
On the 8th, SK Securities raised its target prices for Samsung Electronics and SK hynix to 400,000 won and 2 million won, respectively. The brokerage argued that as the share of long-term semiconductor supply contracts increases, the companies will overcome the limitations of a highly cyclical industry and achieve more stable growth.
Han Dong-hee, the analyst who wrote the report, stated, "Long-term memory supply contracts will form the basis for breaking away from cyclicality," adding, "The logic that memory can be sold at higher-than-expected prices even during a downcycle needs to be reflected in share prices." He went on, "Concerns over the macroeconomy are rising, but the justification for investment in Artificial Intelligence (AI) itself is unlikely to be undermined, and the fact that memory is the key bottleneck also remains unchanged," explaining, "Earnings from memory that can overcome macro headwinds will remain valid, and long-term supply contracts will provide a foundation of trust for this outlook."
Forecasts for this year’s operating profits at Samsung Electronics and SK hynix have also been revised sharply upward.
According to data compiled by FnGuide, the consensus estimate for Samsung Electronics’ annual operating profit this year stands at about 24.1013 trillion won. This is more than double the 10.96351 trillion won forecast from three months ago.
SK hynix’s annual operating profit forecast for this year has likewise jumped to 17.53176 trillion won, more than twice the 8.89142 trillion won projected three months earlier.
Samsung Electronics, meanwhile, posted 5.72 trillion won in operating profit in the first quarter, far exceeding market expectations. For the second quarter as well, the dominant view is that the company will continue to improve its earnings momentum, supported by rising average selling prices (ASP). Ko Young-min, an analyst at Daol Investment & Securities, explained, "Even when we assume aggressive price hikes each time, the actual slope of price increases is turning out to be even steeper."
hsg@fnnews.com Han Seung-gon Reporter