[Edaily Reporter Lee Hye-ra] On the 17th, DS Investment & Securities stated regarding #Samsung Electronics, “Driven by favorable conditions in the memory market and strengthened foundry competitiveness, the company has secured the financial strength to generate quarterly operating profits of around 100 trillion won,” and maintained its “Buy” investment rating while raising its target price to 530,000 won.

Lee Su-rim, an analyst at DS Investment & Securities, stated in a report released that day, “Starting with High-Bandwidth Memory (HBM) 4, competition will shift from memory alone to system integration,” adding, “Samsung Electronics’ strength in producing base dies using its own 4-nanometer process will come to the fore.”
She projected that second-quarter earnings would significantly exceed market expectations. DS Investment & Securities estimated Samsung Electronics’ second-quarter revenue at 174 trillion won and operating profit at 91 trillion won. Taking into account the inclusion of first-half performance bonuses, the firm analyzed that operating profit excluding these bonuses would exceed 100 trillion won. The analyst predicted, “Average selling prices (ASPs) for DRAM and NAND flash, rising by 45% and 60% respectively, will drive the improvement in earnings.”
The analyst also highlighted the potential for improved profitability in the foundry business. “Rising utilization rates driven by an expansion of orders for 4- and 5-nanometer processes could enable the System LSI and foundry businesses to return to quarterly profitability in the fourth quarter of this year,” the analyst said, adding, “We expect them to achieve annual profitability next year.”
He also mentioned the potential to secure major global tech clients. “Google is considering having Samsung Electronics produce the memory I/O die for its next-generation AI chip, the 10th-generation TPU, using its 2-nanometer process,” he explained. “Qualcomm and MediaTek are also evaluating Samsung Electronics’ 2-nanometer process due to TSMC’s price hikes.”
He also viewed the potential for expanded shareholder returns positively. The analyst explained, “If the use of performance-based stock awards expands, it could lead to discussions on utilizing treasury shares and making additional buybacks.”
DS Investment & Securities projected that Samsung Electronics’ operating profit would reach 375 trillion won this year and 524 trillion won next year.
The analyst assessed, “Considering earnings growth, shareholder returns, and full-stack semiconductor manufacturing capabilities, a further revaluation of the company’s value is possible.”