Nomura sees memory shortage to 2028 as Samsung, SK hynix slide

Nomura reaffirmed its bullish ratings on SK hynix and Samsung Electronics and said it expects memory chips to stay in short supply through 2028. Seoul Economic Daily, Chosunbiz and BusinessKorea reported the call on Oct 20. The same day, the KOSPI dropped 3.73% to 5,552.74, and SK hynix closed 4.23% lower at 1,223,000 won (about US$920.86).

Samsung Electronics ended Oct 20 at 211,500 won (about US$159.25). That was 1.86% below its Oct 16 close of 215,500 won.

Nomura’s price goals for the two chipmakers

Nomura put its price goal for SK hynix at 4.7 million won (about US$3,539) and for Samsung at 670,000 won (about US$504), Maeil Business Newspaper, Chosunbiz and BusinessKorea reported. The outlets differed on whether those figures were new. Chosunbiz described the goals as raised. Seoul Economic Daily and BusinessKorea said Nomura had kept its call unchanged.

On Oct 19, DigiTimes reported that demand for memory used in artificial intelligence was brightening the 2027 picture for both companies.

Samsung’s own latest figures came in its preliminary third-quarter results, filed Oct 8. Consolidated operating profit was 107.4 trillion won (about US$80.9 billion), up 782.5% from a year earlier and the highest in at least six quarters. Revenue was 195 trillion won (about US$146.8 billion).

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Both stocks remain far below late September

SK hynix edged up 0.39% to 1,277,000 won on Oct 19. That lagged the KOSPI, which gained 1.76% to 5,768.01. The index then lost more than that gain on Oct 20. Over the two sessions from its Oct 16 close, SK hynix fell 3.85%, or 3.61% in dollar terms. The TIGER 200, a fund tied to the KOSPI 200 index, fell 2.16% over the same window.

The larger decline dates from late September. Between Sep 23 and Oct 20, SK hynix shed 34.32% (32.82% in US dollars). Samsung lost 25.92% over the same period (24.23% in dollars). Pacific Tape covered last week’s rout in both stocks.

SK hynix was worth about 893.4 trillion won (about US$672.7 billion) on Oct 20. That was 21.17% of the KOSPI 200’s total market value, so its swings carry heavy weight in the index. Its market value has fallen 30.47% over 20 sessions. Chip stocks are one reason the KOSPI swings so sharply.

Earnings calls next week

SK hynix is scheduled to hold its third-quarter earnings call on Oct 28 at 09:00 KST. Samsung Electronics is scheduled to hold its call on Oct 29 at 10:00 KST.

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Information only, not investment advice.