Samsung Electronics' analyst price target has been raised from approximately ₩83,700 to ₩92,600. This change reflects improved sentiment driven by a major contract win, expectations of higher revenue growth and profit margins, and a positive outlook for the DRAM market according to analysts.

Analyst Commentary

Recent analyst updates reflect a mix of optimism and caution regarding Samsung Electronics' outlook, driven by major contract wins, evolving market dynamics, and competitive positioning within the semiconductor industry.

Bullish Takeaways

• Bullish analysts highlight the recent $16.5 billion contract win as a transformative event for Samsung’s Foundry division. They note improved utilization rates and the potential to attract more large-scale projects.
• The ongoing DRAM upcycle is seen as robust and sustainable. Samsung is viewed as well positioned to benefit as a key player in the memory market through at least 2026.
• Upward price target adjustments reflect expectations for enhanced revenue growth and improved profit margins, supported by the company’s exposure to high-growth industry segments.
• The successful execution on major contracts is seen as a positive reference point that could drive further valuation rerating and increase growth visibility.

Bearish Takeaways

• Bearish analysts warn that despite recent successes, sustaining above-market valuation multiples will depend on continued margin expansion and effective execution on new project pipelines.
• The competitive landscape in advanced foundry and memory remains challenging. Spending is largely driven by a limited set of technology nodes and leading customers.
• There are concerns about whether industry drivers can support further upside, especially as peers and competitors aggressively invest in next-generation technologies.

What's in the News

• Samsung and SK Hynix have signed a letter of intent to supply semiconductors for OpenAI's $500 million Stargate data center project, following a high-profile meeting with OpenAI's CEO in Seoul (Financial Times).
• The Trump administration is considering tariffs on foreign electronics, including those produced by Samsung, based on the value of chips in each device (Reuters).
• Tesla is expanding its semiconductor development for next-generation AI chips, with Samsung's foundry securing the wafer fabrication order for Tesla's "AI6" chip (DigiTimes).
• Samsung has settled a wireless patent lawsuit with Headwater Research after a $279 million jury verdict earlier in 2025 (Reuters).
• Nvidia's $5 billion investment in Intel could reshape competition for Asian chipmakers, including Samsung. This development may increase both opportunity and rivalry in global semiconductor markets (Reuters).

Valuation Changes

• Fair Value: Increased from approximately ₩83,700 to ₩92,600, reflecting greater optimism for future earnings potential.
• Discount Rate: Remained essentially unchanged, with only a marginal rise from 8.23% to 8.23%.
• Revenue Growth: Projected growth rate has risen modestly, moving from 4.20% to 4.75%.
• Net Profit Margin: Improved slightly, increasing from 11.01% to 11.22%.
• Future P/E: Expected price-to-earnings ratio has grown from 17.60x to 18.82x, which indicates a modestly higher valuation multiple.