Update shared on16 Sep 2025
Fair value Increased 1.24%Analysts raised Samsung Electronics’ price target from ₩82,693 to ₩83,723, citing a $16.5B Tesla contract win and a robust DRAM upcycle that outweigh ongoing smartphone market headwinds.
Analyst Commentary
- The $16.5B Tesla contract win is expected to significantly boost Samsung's Foundry division through increased utilization rates and enhance its track record for securing future large-scale projects.
- Bullish analysts highlight a strong and likely sustainable upcycle in DRAM, positioning Samsung as a leading beneficiary well into 2026.
- Some analysts raise concerns over muted 2025-2027 smartphone growth due to weak innovation, high Android inventory levels, lingering economic uncertainty, and reduced subsidies in China.
- Elevated U.S. tariff-related demand pull-forward is anticipated to compress future sales growth, making the second half of 2025 particularly challenging for the broader smartphone market, including Samsung.
- Bullish analysts stress that Samsung's exposure to memory upcycles and foundry division rebound outweigh headwinds in handset demand, supporting higher price targets.
What's in the News
- Samsung agreed to settle a wireless technology patent lawsuit with Headwater Research after losing a $279M jury verdict earlier in 2025 (Reuters, 2025-09-15).
- The U.S. Commerce Department revoked previous blanket waivers for Samsung and SK Hynix, requiring new licenses for purchases of U.S. chipmaking equipment for their Chinese factories, and is now considering annual site-specific permits instead of indefinite approvals (Reuters & Bloomberg, 2025-09-01, 2025-09-08).
- Samsung is reportedly considering an investment in Intel to strengthen advanced chip packaging capabilities and rival TSMC (DigiTimes, 2025-08-28).
- Samsung will not be subject to proposed 100% U.S. tariffs on semiconductor imports, following clarifications from Korean trade officials (Reuters, 2025-08-07).
- Samsung signed a $16.5B chip manufacturing deal with a major global customer, the largest such contract disclosed to date (Bloomberg, 2025-07-27).
Valuation Changes
Summary of Valuation Changes for Samsung Electronics
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from ₩82693 to ₩83723.
- The Consensus Revenue Growth forecasts for Samsung Electronics has risen slightly from 4.1% per annum to 4.2% per annum.
- The Discount Rate for Samsung Electronics remained effectively unchanged, moving only marginally from 8.39% to 8.23%.
Disclaimer
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