Samsung Electronics Chairman Lee Jae-yong embraces Nvidia CEO Jensen Huang during the Korea-U.S. Business Roundtable reception held at the Willard Hotel in Washington, D.C., on August 25, 2025 (local time).
SEOUL, Nov. 12 (Korea Bizwire) — Morgan Stanley has sharply revised upward its outlook for South Korea’s two largest chipmakers, saying the global memory semiconductor rally is being powered by surging demand from artificial intelligence (AI) data centers and cloud providers.
In a report titled “Memory: The Ultimate Pricing Power,” released Tuesday, the U.S. investment bank said it expects continued gains in dynamic random-access memory (DRAM) and NAND flash prices, driven by competition among hyperscale AI operators less sensitive to component costs.
“DRAM prices have surpassed previous record highs, and historically, new peaks have translated into strong stock performance,” the report said, noting that “AI data centers and cloud service companies are now the main drivers of memory demand.”
Morgan Stanley forecast that DRAM prices would continue rising sharply over the coming weeks, while NAND contract prices could climb 20 to 30 percent in the fourth quarter on the back of robust enterprise solid-state drive (eSSD) orders.
At SK hynix’s booth during the 2025 Semiconductor Exhibition (SEDEX) held at COEX in Seoul’s Gangnam District, the company’s sixth-generation high bandwidth memory chip, the HBM4, was on display. (Yonhap)
Against this backdrop, the bank set a new target price of 144,000 won for Samsung Electronics, with a potential upside to 175,000 won in a bullish scenario, citing steady macroeconomic conditions and China’s continued struggles to penetrate the high-end memory market.
It also raised its target price for SK Hynix to 730,000 won, projecting that the company could reach 850,000 won if it maintains its leading position in high-bandwidth memory (HBM) with profit margins in the high 50 percent range.
Morgan Stanley’s latest bullish forecast marks a sharp reversal from its earlier stance. In August 2021, its “Semiconductors: Winter Is Coming” report predicted a downturn in the memory cycle. And as recently as September last year, it downgraded SK Hynix amid concerns over DRAM price declines and HBM oversupply—sending the company’s shares tumbling by 11 percent intraday.
This time, the firm said, AI’s explosive data-processing needs have redrawn the map of memory demand, positioning Samsung and SK Hynix as key beneficiaries of the new technology era.
Ashley Song (ashley@koreabizwire.com)
