HBM Landscape is Changing: Samsung's Target Price Raised by 12.5%, SK Hynix Cut by 27%

BlockBeats News, August 31, Korean LS Securities significantly adjusted the target prices of Samsung Electronics and SK Hynix: raised the target price of Samsung Electronics from 400,000 Korean won to 450,000 Korean won, a 12.5% increase; while maintaining a "Buy" rating for SK Hynix, but lowering the target price from 3.3 million Korean won to 2.4 million Korean won, a decrease of approximately 27.3%.

LS Securities believes that the adjustment does not mean a weakening of HBM demand, but rather a change in the HBM4 supply landscape. Data shows that Samsung's HBM4 shipment as a percentage of its total HBM shipment has increased from about 5% in the first quarter of this year to about 35% in the second quarter, while production yield continues to improve. Samsung is rapidly regaining competitiveness in HBM4 mass production.

At the same time, as Samsung expands its supply, SK Hynix's previously high "supplier premium" obtained through supply concentration is gradually narrowing. LS Securities has lowered SK Hynix's 2027 HBM operating profit margin expectation from about 80% to about 60% and has lowered the target price based on this.

The institution emphasizes that this adjustment does not indicate a bearish outlook on the HBM cycle, but rather indicates that supplier competition is returning to a "normal" state. The key focus of the future HBM market will shift from simple demand growth to whether Samsung can continue to expand its market share, and whether SK Hynix can maintain its technological leadership and supply share with key customers.