TLDR
- Wall Street analyst Shawn Kim from Morgan Stanley identified Samsung’s pullback as an attractive entry point following a 20% weekly decline
- Samsung’s performance lagged behind the KOSPI index, which fell 17% during the same timeframe
- The investment bank reaffirmed Samsung as their preferred pick, highlighting HBM4 progress, SRAM technology, and foundry adaptability
- Korean media outlet Korea JoongAng Daily disclosed that Samsung’s Texas semiconductor facility, valued at $37 billion, won’t reach full production until early 2027
- Shares traded in Seoul plummeted almost 12% during Wednesday’s session after dropping 10% the day before
Samsung Electronics experienced significant turbulence this week. Shares declined approximately 20% over the week, performing worse than the KOSPI benchmark’s 17% retreat.
Samsung SDI Co., Ltd., 0L2T.L
The most recent selloff was triggered by a Tuesday report from Korea JoongAng Daily. According to the publication, full-scale manufacturing at Samsung’s Taylor, Texas semiconductor facility has been delayed once more — now targeting early 2027.
The $37 billion manufacturing complex was originally unveiled in 2021. Since its announcement, the project has encountered several postponements, even after securing substantial chip contracts.
Among these contracts is an alleged $16.5 billion agreement with Tesla. However, even this major deal hasn’t prevented the project from experiencing ongoing setbacks.
The news story referenced several anonymous sources with knowledge of the situation. While pilot operations have commenced, no definitive date for full production has been established.
Samsung disputed the characterization. Company representatives told the publication that “production” refers to finalizing preparations for volume manufacturing by late 2026, positioning the facility to be operational at that point.
Previous projections indicated that second-generation 2-nanometer technology, designated as SF2P, would reach volume production this year. That schedule now appears to have been extended.
Samsung shares in Seoul dropped nearly 12% to 172,100 won by Wednesday morning trading. This followed a 10% decline from the prior trading day.
Morgan Stanley Sees a Buy
Despite these headwinds, Morgan Stanley analyst Shawn Kim presented a more bullish perspective. He characterized the selloff as an attractive buying opportunity.
“Historically, such corrections have offered a good opportunity to buy,” Kim wrote, adding that earnings expectations still have “a lot of room for recovery.”
The financial institution maintained Samsung as their preferred semiconductor investment. They also sustained their favorable stance on SK hynix.
Morgan Stanley highlighted HBM4 qualification progress, SRAM technology capabilities, and foundry manufacturing flexibility as key factors supporting their bullish thesis.
Kim also described an evolving trend in AI memory technology. He indicated the industry is transitioning toward a hybrid approach as semiconductor designs become increasingly specialized.
AI Memory Architecture Shift
While HBM continues to dominate, Morgan Stanley noted that SRAM is becoming more important for applications where response time is more critical than bandwidth.
The firm anticipates Nvidia will introduce a new inference processor at its forthcoming GPU Technology Conference. The processor would utilize a Language Processing Unit design incorporating substantial on-chip SRAM.
Morgan Stanley described the architecture as “purpose-built for the sequential speed of inference.” It said the chip appeals to customers willing to pay for speed.
Kim positioned this as a complementary relationship rather than direct competition. The perspective suggests SRAM handles time-sensitive operations while HBM provides scalable memory volume.
The firm also observed that LPU architectures could circumvent existing supply chain constraints affecting HBM and CoWoS packaging availability.
Samsung shares were changing hands at 172,100 won during Wednesday morning hours, reflecting a nearly 12% intraday loss.
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