Goldman Sachs Raises Outlook for Samsung and SK Hynix as Memory Prices Climb
Samsung Electronics and SK Hynix could experience stronger earnings growth as memory chip prices rise and demand linked to artificial intelligence tightens supply across the semiconductor industry, according to a new report from Goldman Sachs.
Goldman Sachs Raises Price Targets
Goldman Sachs increased its target price for SK Hynix to 1.35 million won, up from 1.2 million won, while maintaining its Buy rating on the stock. The investment bank also raised its target for Samsung Electronics to 260,000 won, compared with the previous forecast of 205,000 won.
The bank said the revisions reflect higher earnings expectations, driven by stronger projections for DRAM and NAND memory prices.
Memory Chip Prices Expected to Rise
According to Goldman Sachs, early negotiations for second-quarter 2026 memory supply contracts are already taking place at higher price levels than previously anticipated. This suggests that memory chip prices could continue rising in the coming months.
Supply conditions remain tight in several markets, including personal computers and smartphones, even though consumer demand in those sectors remains relatively modest.
However, strong demand from AI servers is absorbing much of the available memory supply, tightening the market and supporting higher prices.
SK Hynix Positioned for Strong Memory Cycle
Goldman Sachs believes SK Hynix could benefit from one of the strongest upcycles in the traditional memory market in years.
The bank forecasts operating profit of around 34.7 trillion won in the first quarter of 2026, with full-year operating profit reaching approximately 202 trillion won, both above current market consensus estimates.
Operating margins could also improve significantly, with Goldman projecting DRAM margins in the high-70% range and NAND margins in the high-40% range this year.
In addition, the brokerage expects SK Hynix to maintain its leadership in AI memory products, which could help push return on equity above 80%.
Samsung Electronics Could See Profit Surge
Samsung Electronics is also expected to benefit from the improving memory market. Goldman Sachs estimates the company could generate operating profit of around 40.3 trillion won in the first quarter of 2026, with full-year profits reaching roughly 239 trillion won.
The projected growth would be supported by higher memory chip prices and increased demand for high-bandwidth memory used in artificial intelligence computing.
Goldman expects Samsung’s operating profit to increase more than fivefold in 2026, while return on equity could rise to approximately 37%.
Valuations Remain Attractive
Despite the improved earnings outlook, Goldman Sachs notes that both Samsung Electronics and SK Hynix still trade at relatively low valuations based on projected 2027 earnings.
The bank believes these valuations remain attractive given the strong growth expected in the global memory chip market, particularly as AI technologies continue to drive demand for advanced semiconductors.
