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Nomura Sees Rebound Potential for Samsung and SK Hynix Amid Deep Undervaluation
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-04
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Nomura maintains a 'Buy' rating on Samsung Electronics and SK Hynix, citing strong AI-driven memory demand and stable long-term contract models.
What Happened
Investment Outlook: Nomura Securities maintains a 'Buy' rating for Samsung Electronics and SK Hynix, noting that their stock prices are severely undervalued following recent market corrections. The firm highlights that the AI investment cycle is driving unprecedented memory demand that will require significant production capacity expansion over the next several years.
Structural Shifts: The adoption of Long-Term Agreements (LTA) in the memory market has significantly improved earnings visibility. Major tech firms are securing supply by providing advance payments and accepting strict penalty clauses, ensuring stable revenue streams for suppliers like Samsung and SK Hynix.
Currency Impact: While a stronger Korean Won poses a short-term risk to operating profits, Nomura believes this will be offset by rising Average Selling Prices (ASP) for memory chips. The firm views the currency appreciation as a natural byproduct of the trade surplus generated by the semiconductor super-cycle.
Future Re-rating: Nomura emphasizes that the capital expenditure capacity of big tech companies remains stronger than market fears suggest. The combination of robust market fundamentals and active shareholder return policies is expected to drive a significant re-rating of both companies' stock prices.