Samsung Electronics stocks declined 30% from recent highs amid AI investment concerns, yet KB Securities maintained its 'buy' rating and 60 million won target price on the 13th, citing unchanged core fundamentals in the memory semiconductor industry. The stock peaked at 362,500 won on the 18th of last month before falling to 254,500 won on the 13th, representing a 29.8% decline from the peak. KB Securities analyst Kim Dong-won attributed the price adjustment to weakened investor sentiment rather than changes in earnings or memory industry structure, characterizing the decline as a buying opportunity driven by excessive market concerns rather than fundamental deterioration. The assessment reflects ongoing confidence in AI infrastructure industry growth and memory supply constraints as key drivers for Samsung Electronics' medium to long-term prospects.
KB Securities Maintains Buy Rating Despite 30% Stock Decline
KB Securities stated in a report on the 15th that Samsung Electronics stocks reflected AI investment slowdown concerns and fell 30% from the previous high, but the core fundamentals of long-term growth in the AI infrastructure industry and memory supply shortage remain unchanged compared to a month ago. The firm issued a 'buy' rating and 60 million won target price for Samsung Electronics on the 13th.
Following the 13th closing price of 254,500 won, the stock rebounded 3.34% to 263,000 won on the 14th. As of 11:05 a.m. on the 15th, Samsung Electronics stocks traded at 278,500 won, up 5.89% from the previous trading day's closing price.
KB Securities researcher Kim Dong-won stated that the recent stock price adjustment reflects a contraction in investment sentiment more than changes in earnings or memory industry structure. Kim explained that this adjustment represents a price correction created by excessive market concerns rather than fundamental deterioration, and from a medium to long-term perspective, it is expected to become a buying opportunity.
2027 Forecast as Tightest Memory Supply Period in 70-Year History
KB Securities forecasted that 2027 will be the tightest supply period in the 70-year history of the memory semiconductor industry, with supply shortage likely to continue until at least 2028. The firm projected that general-purpose DRAM production capacity will be structurally constrained due to aggressive investment centered on high bandwidth memory (HBM).
Researcher Kim stated that the proportion of HBM in global DRAM wafer production is expected to expand more than twofold from 15% this year to 34% next year, meaning most new production capacity will concentrate on HBM. Kim analyzed that as a result, the memory supply shortage experienced by general customers is expected to intensify to a level close to a 'supply cliff' beyond simple tight supply and demand.
FERC Streamlines Power Grid Connection Procedures for AI Data Centers
The US Federal Energy Regulatory Commission (FERC) simplified power grid connection procedures for AI data center construction to a fast track, with the power grid connection period previously requiring more than 5 years expected to be shortened to 1-2 years in the future.
Researcher Kim explained that US big tech companies can now advance their power securing schedules by pursuing investments in their own power generation facilities. Kim added that AI data center construction speed is also expected to accelerate more than twice as fast compared to the existing pace.
FAQ
What did KB Securities say about Samsung Electronics stocks on the 13th?
KB Securities issued a 'buy' rating and 60 million won target price for Samsung Electronics on the 13th, stating that core fundamentals of AI infrastructure industry growth and memory supply shortage remain unchanged despite the stock's 30% decline from recent highs.
Why does KB Securities forecast 2027 as the tightest memory supply period?
KB Securities projects 2027 as the tightest supply period in the 70-year history of the memory semiconductor industry because HBM proportion in global DRAM wafer production is expected to expand from 15% this year to 34% next year, with most new production capacity concentrating on HBM and structurally constraining general-purpose DRAM production capacity.
How did FERC's regulatory change affect AI data center construction timelines?
The US Federal Energy Regulatory Commission (FERC) streamlined power grid connection procedures for AI data center construction to a fast track, shortening the connection period from more than 5 years previously to an expected 1-2 years in the future, which is expected to accelerate AI data center construction speed more than twice as fast compared to the existing pace.
