[Edaily Reporter Shin Ha-yeon] On the 16th, Daishin Securities projected that #Simtek’s earnings improvement would gain momentum, driven by the expansion of mass production for NVIDIA’s SOCAMM and increased sales of non-memory package substrates. The firm maintained its “Buy” rating and raised the target price by 52.4% from the previous 105,000 won to 160,000 won.

Park Kang-ho, an analyst at Daishin Securities, stated, “Second-quarter operating profit is expected to reach 46.5 billion won, exceeding both our previous estimate and the market consensus,” adding, “Following strong first-quarter results, profitability is improving faster than expected in the second quarter as well.” He continued, "We have raised our earnings per share (EPS) forecasts for 2026 and 2027 by 10.5% and 4.1%, respectively, and have also raised the target price to 160,000 won."

He cited the growth of non-memory semiconductor package substrates as the driving force behind the second-quarter earnings improvement. Analyst Park noted, “Sales of FC-CSP and SiP are increasing, and in some areas, the shift from traditional CSP to FC-CSP and SiP is occurring due to upgraded memory specifications,” adding, “Our strategy of targeting niche markets is yielding tangible results.”

He also analyzed that the expansion of high-value-added products is a factor driving profitability. He noted, “MCP (Multi-Chip Package) sales have increased by 10% compared to the previous quarter, and both utilization rates and product mix are improving simultaneously due to the growing share of MSAPs,” adding, “Amid rising demand for servers and SSD modules, the MCP business has entered the economies of scale phase.”

In particular, he predicted that the benefits from NVIDIA’s expansion of SoC-on-Chip 2 mass production would begin to materialize in earnest. Analyst Park emphasized, “Simtek is the only company participating in SoC-on-Chip 2 production for all three major memory manufacturers—Samsung Electronics, SK Hynix, and Micron,” adding, “Since NVIDIA has shifted to a strategy of expanding production scale despite partially reducing memory capacity, Simtek is expected to benefit the most.” He added, “With additional production scheduled for June, it is time to pay attention to the possibility of further upward revisions to third-quarter earnings forecasts.”

Daishin Securities projected Simtek’s second-quarter revenue and operating profit for this year at 450.2 billion won and 46.5 billion won, respectively. This represents year-over-year increases of 32.1% and 738.4%, respectively, with operating profit expected to exceed the consensus estimate.