Nomura has upgraded its price targets for Samsung Electronics and SK Hynix, citing a surge in AI-driven memory demand. The investment firm raised Samsung's target price from KRW 340,000 to KRW 590,000 and SK Hynix's from KRW 2.34 million to KRW 4 million, maintaining a "Buy" rating for both companies.
The report highlights that as AI semiconductor demand transitions from training to inference workloads, memory demand is experiencing exponential growth. However, Nomura warns that memory supply growth is limited, with an annual compound growth rate of around 30%, potentially leading to a structural supply-demand imbalance. The firm notes that while the industry is attempting to address this gap through software and architectural optimizations, these measures may only slow the growth pace rather than reverse the trend.
Nomura Upgrades Samsung and SK Hynix to 'Buy' Amid AI Memory Demand Surge
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