Samsung targets lifted to W96,000-W110,000 as HBM demand promises $14B-$19B boost

Analysts are pushing up targets for Samsung Electronics (KOSPI: 005930) as the share rally rolls on, citing stronger-than-expected memory trends and a faster-than-anticipated pickup in high-bandwidth memory (HBM) demand.

Goldman Sachs bumped its 12-month price objective to W96,000 from W84,000 and kept a Buy rating on the name. The bank lifted its Q3 operating profit forecast to W10.2 trillion (previously W8.9 trillion), pointing to firmer conventional DRAM/NAND volumes and pricing, a smaller drag from foundry and system LSI operations, plus a slightly more favorable USD/KRW assumption. Goldman also raised earnings estimates for 2025-27 by roughly 8-24%, and pushed up its HBM revenue outlook to about $14 billion in 2026 and $19 billion in 2027 after modest upward tweaks to both years.

KB Securities went a step further, naming Samsung its top pick on the KOSPI and lifting its target by 22% to W110,000 - a level that implies roughly 33% upside from prior reference points. KB increased its net-profit forecasts for 2025 and 2026 by 16% and 24% respectively, and now penciled in second-half-2025 operating profit of W20.8 trillion, up about a third year-on-year and the strongest half since 2H21. For 2026, KB's operating-profit estimate jumps to W53.4 trillion, aided by improving DRAM margins, lower foundry losses, and gains in display panel sales. The broker also flagged Samsung's edge as a likely HBM4 supplier to Nvidia (NASDAQ: NVDA) in 2026 - a point that underpins its bullish revenue trajectory for HBM.

Both banks put AI-related demand at the center of their bullish cases. The story they tell is familiar: hyperscalers are spending, enterprise servers are being refreshed, and supply remains tight enough to push memory prices higher. Goldman expects DRAM to see price increases for six straight quarters through Q3 2026, while NAND is forecast to stabilize and then improve on the back of eSSD demand for AI storage. KB expects an explosive jump in HBM shipments in 2026, helped by approvals for Samsung's 12-high HBM3E designs that pave the way for HBM4 orders.

On valuation, analysts note Samsung is still trading around a mid-cycle multiple - roughly 1.3x forward price-to-book - even as a multi-quarter memory-price upcycle and a material HBM profit inflection loom. That's the why behind the upgraded targets: better unit economics ahead and an earnings base that analysts expect to re-rate.

There are clear upside drivers: stronger DRAM and NAND pricing, an accelerating HBM revenue stream, and narrower foundry losses. Counterweights include the usual suspects - memory-price volatility, execution risk in ramping HBM volumes, competition for HBM supply, and currency swings that can eat into reported won-denominated profits.

A straight readout: price targets climbed (Goldman to W96,000; KB to W110,000), forecasts were raised for the coming years, and analysts are leaning on AI-related memory demand - especially HBM - as the trigger for the next earnings leg. Will the expected HBM explosion and tighter memory markets be enough to keep this rally humming into 2026?