HBM Landscape Shifts: Samsung’s Target Price Raised 12.5%, SK Hynix’s Cut by 27%
2026.08.31 16:03:00
South Korea’s LS Securities has significantly adjusted its target prices for Samsung Electronics and SK Hynix: it raised Samsung Electronics’ target price from 400,000 won to 450,000 won, a 12.5% increase; it maintained its "Buy" rating for SK Hynix, but cut the target price from 3.3 million won to 2.4 million won, a roughly 27.3% decrease. LS Securities noted that the adjustment does not signal weakening demand for high-bandwidth memory (HBM), but rather a shift in the HBM4 supply landscape. Data shows Samsung’s HBM4 shipments as a share of its total HBM shipments rose from around 5% in Q1 this year to roughly 35% in Q2, alongside sustained improvements in production yield, as Samsung recovers its HBM4 mass production competitiveness at a faster pace. Meanwhile, as Samsung expands its supply, the high "supplier premium" SK Hynix previously enjoyed due to supply concentration may gradually narrow. LS Securities cut its 2027 HBM operating margin forecast for SK Hynix from around 80% to roughly 60%, leading to the target price adjustment. The firm emphasized that this revision is not a bearish view on the HBM cycle, but rather a belief that supplier competition is returning to normalization. The key focus of the future HBM market will shift from pure demand growth to whether Samsung can continue expanding its market share, and whether SK Hynix can maintain its technological leadership and core customer supply share.
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