"Drops of 10% at the slightest trigger"... Target prices for Samsung Electronics and SK hynix slashed as analysts say semiconductor cycle has peaked
- Input
- 2026-08-07 08:30:49
- Updated
- 2026-08-07 08:30:49
[Financial News] Brokerage firms have cut their target prices for Samsung Electronics and SK hynix one after another. Although both companies posted solid second-quarter results, changes in the memory market outlook and uncertainty over Artificial Intelligence (AI) investment were reflected in the revisions.
Brokerages slash Samsung Electronics target price to as low as 300,000 won
On the 6th, Samsung Electronics closed at 230,500 won, down 6.30% from the previous day. SK hynix fell 10.37% to 1,495,000 won.
Over the past month, Samsung Electronics has plunged about 40%, while SK hynix has dropped about 38%. The two stocks appear to have corrected as sentiment toward AI-related investment weakened and profit-taking selling emerged.
In response, securities firms lowered their target prices for Samsung Electronics and SK hynix. Mirae Asset Securities cut Samsung Electronics' target price from 550,000 won to 370,000 won, Kiwoom Securities lowered it from 430,000 won to 390,000 won, and BNK Investment & Securities reduced it from 430,000 won to 300,000 won.
Peak-out concerns and a China shock add pressure to stock prices
As worries persist that the semiconductor cycle has already peaked, additional negative factors have emerged. News that China has begun producing semiconductor lithography equipment also weighed on target price cuts.
Mirae Asset Securities reflected the issue of China localizing lithography equipment in its target price for Samsung Electronics. As a result, it lowered the target by 33% from the previous level.
SK hynix's target price was also cut sharply. NH Investment & Securities lowered it from 4.1 million won to 3.4 million won, Daishin Securities from 3.9 million won to 3.2 million won, and Samsung Securities from 3.5 million won to 3 million won. Mirae Asset Securities cut its estimate from 4.2 million won to 2.8 million won, while BNK Investment & Securities lowered it from 1.85 million won to 1.48 million won. Analysts said the moves were aimed at narrowing the gap between current share prices and target prices while reflecting a more conservative earnings outlook.
BNK Investment & Securities said demand momentum has passed its peak, while aggressive capacity expansion by companies raises concerns that the market could swing into oversupply. It also said investor sentiment worsened after ChangXin Memory Technologies (CXMT) entered the Shanghai Stock Exchange (SSE), adding another reason for the lower target price.
[email protected] Han Seung-gon Reporter