Samsung Electronics, SK hynix stocks soar on foreign demand

2024.03.27 09:17:01 | 2024.03.27 09:17:24

[Graphics by Song Ji-yoon]이미지 확대

[Graphics by Song Ji-yoon]

The stocks of Samsung Electronics Co. and SK hynix Inc. are flying high on strong foreign demand amid expectations of an upturn in the dynamic random-access memory (DRAM) market and accelerated growth in the high-bandwidth memory semiconductor (HBM) market following Micron Technology Inc.’s earnings announcement last week.

Shares of Samsung Electronics finished 2.17 percent higher at 79,900 won ($60) on Tuesday, after surpassing the 80,000 won mark during the day for the first time in more than two years.

Shares of SK hynix also closed at a new high of 176,600 won, up 4.25 percent from the previous day.

Foreign investors net purchased 258.3 billion won worth of Samsung Electronics shares on Tuesday and 60.5 billion won in SK hynix shares.

Local and foreign brokerages have recently revised upwards the earnings forecasts of the two chipmakers for the first quarter of 2024.

According to Morgan Stanley on Tuesday, DRAM prices are projected to go up by 20 percent in the second quarter and NAND chip prices by 10 to 15 percent.

It projected SK hynix to maintain its dominance in the HBM market, with a market share of over 90 percent in 2024. It raised its target price for SK hynix to 230,000 won and Samsung Electronics to 97,000 won.

Korean securities firms, including Korea Investment & Securities Co. and Shinyoung Securities Co., expected Samsung Electronics to have much more potential for a further rise in its stock price because of a possible recovery in DRAM demand and a replacement cycle for servers coming in 2025.

By Kim Je-lim and Han Yubin

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