Samsung stock price target maintained on potential HBM4 approval

Morgan Stanley reiterated its Overweight rating and KRW70.00 price target for Samsung Electronics, citing potential HBM4 sample approval for Nvidia's Rubin GPU in the second half of 2025 as a key catalyst. A successful qualification could trigger a re-rating of Samsung stock, driven by a significant new Total Addressable Market opportunity and shifts in HBM market competition. The firm's analysis suggests Samsung is currently undervalued, supported by a 15.35% revenue growth in the last twelve months.

Analysis

Morgan Stanley has reiterated its Overweight rating and KRW70.00 price target for Samsung Electronics (SSNLF), which reported a 15.35% revenue growth over the last twelve months and is currently trading at $42.33. InvestingPro analysis further suggests the stock may be undervalued based on its Fair Value metrics. A pivotal catalyst identified by Morgan Stanley is the potential approval of Samsung's HBM4 samples for Nvidia's Rubin GPU, anticipated in the second half of 2025, likely around September. Successful qualification is expected to trigger a re-rating of Samsung's stock, driven by access to a 'significant new TAM opportunity' and a shift in 'the current competitive dynamics in the HBM market.' The increasing importance of High Bandwidth Memory (HBM) technology in the AI chip sector underscores the strategic significance of this development for Samsung as it seeks to enhance its competitive position. Morgan Stanley's maintained price target reflects confidence in Samsung's ability to capture greater market share upon securing approval for its next-generation memory technology.

Key Decisions for Investors

• Given the Overweight rating, strong revenue performance, and potential undervaluation, investors could view this as a positive signal for Samsung Electronics.
• The HBM4 sample approval for Nvidia's Rubin GPU in H2 2025 represents a key event to monitor, as its success is projected to significantly impact Samsung's stock and market standing.
• Investors should consider the potential for a stock re-rating and expanded market share in the HBM sector for AI applications if Samsung achieves this HBM4 qualification.