Business · Markets · 6 hrs ago
Morgan Stanley cuts Samsung and SK Hynix price targets
Morgan Stanley cut its price targets for Samsung Electronics and SK Hynix, South Korea’s two major chipmakers.
It lowered its target for SK Hynix to 1.6 million won from 2.6 million won, and for Samsung Electronics to 309,000 won from 381,000 won.
The bank said new chip production from late 2027 could increase supply, while some AI data-center projects may be delayed.
If supply grows faster than demand, the current shortage could ease and chip prices could come under pressure.
The bank still raised its forecasts for next year’s operating profits at both companies, reflecting strong near-term demand for memory chips used in AI systems.
It kept its positive investment ratings but warned profits could weaken after 2028 as competition grows and the memory-chip market’s usual ups and downs return.
Morgan Stanley cut its price targets for SK Hynix and Samsung Electronics, citing risks to memory-chip profitability from 2028 onward.
It lowered SK Hynix’s target by 38% to 1.6 million won and Samsung Electronics’ by 19% to 309,000 won.
The bank expects new production facilities to increase chip supply from late 2027, while data-center construction could slow.
It raised its forecasts for the companies’ next-year operating profits and kept both stocks rated Overweight.
Morgan Stanley named Samsung Electronics its preferred semiconductor stock, replacing Samsung Electro-Mechanics.
- Who
- Morgan Stanley cut its price targets for Samsung Electronics and SK Hynix.
- What
- It lowered the targets while raising its next-year operating-profit forecasts and maintaining Overweight ratings for both companies.
- When
- The report was released on the day before Yonhap published its article on November 10, 2026.
- Where
- The companies are South Korean chipmakers. The report concerns the global memory-chip market.
- Why
- Morgan Stanley expects rising chip supply from late 2027 and possible delays to data-center construction to pressure future profitability.
This story does not have two clearly opposing sides.
Shawn Kim warned of a downturn in the semiconductor market in a report titled Memory, winter is coming.
Morgan Stanley raised the possibility of a memory-chip supply glut and cut its price targets for SK Hynix and Samsung Electronics.
Morgan Stanley released a report lowering its price targets for SK Hynix and Samsung Electronics.
Yonhap published its report on Morgan Stanley’s revised targets and forecasts.
- SK Hynix price target
- Cut 38%, from 2.6 million won to 1.6 million won
- Samsung Electronics price target
- Cut 19%, from 381,000 won to 309,000 won
- Samsung preferred-share target
- Cut from 304,800 won to 247,200 won
- New production facilities
- Expected to begin operating from late 2027
- 2028 data-center capacity growth
- Forecast reduced from about 21% to 9%
What people are saying
The most important debate in the current memory semiconductor market is whether we can avoid an earnings cliff in 2028.
Stock prices move ahead of companies’ fundamentals, and they factor in the risk that earnings forecasts will be lowered in the coming years as supply catches up with demand and the pace of AI infrastructure construction slows.
AI is bringing structural changes to the memory semiconductor industry, but the memory industry still has cyclical characteristics.