Morgan Stanley says memory chip selloff is over, reaffirms targets for Samsung Electronics, SK Hynix
Morgan Stanley said in an Asia tech equity report that the recent memory chip selloff is over and valuations offer a tactical re-entry. It kept price targets unchanged for SK Hynix at 2.6 million won and Samsung Electronics at 375,000 won. The bank raised SK Hynix FY2026 EPS by 13% and cut Samsung FY2026 forecasts by 10%, citing slower price growth risk after Q4.
How this was made
The 30-second read
Why it matters
The new report argues the steepest correction is over and frames the pullback as a mid-cycle dip, while still flagging slower memory price growth from Q4 due to rising inventories and supply. It also highlights AI-related capex and shareholder return programs (buybacks) as supportive catalysts, with explicit EPS forecast changes for Samsung and SK Hynix.
Market read
This is a sell-side cycle call update for memory stocks, combining a “selloff is over” message with concrete target and EPS estimate changes that can drive tactical re-entry flows.
What to watch
Buybacks can support the stock, but they do not prevent margin compression if DRAM/NAND pricing decelerates materially; positioning and macro demand for AI servers could also dominate.
Background
Morgan Stanley previously warned in July about a potential short-term correction in memory stocks as price gains neared a peak and positioning became concentrated.
Ticker impact
Morgan Stanley reaffirms Samsung Electronics targets and flags buybacks as a key catalyst, while cutting its FY2026 EPS forecast by 10%.
Near-term support from the “selloff is over” message, partially offset by the 10% Samsung EPS cut.
The article contains explicit target/forecast changes and a catalyst (buybacks), but it is still an analyst note rather than a new company disclosure.
Morgan Stanley says the memory selloff is over, keeps SK Hynix targets, and raised FY2026 EPS by 13% citing AI capex and shareholder returns.
Bias toward upside as the note combines “correction over” framing with an EPS raise and unchanged target.
The text provides concrete EPS and target details plus a clear catalyst narrative, but it remains a sell-side update.
Market effects
Could reduce near-term downside pressure across memory suppliers by validating that the steep correction may be complete, while still warning of slower price growth from Q4.
Supports sentiment in South Korean semiconductor complex (Samsung, SK Hynix) during Asia trading hours.
Memory-cycle read-through can influence global DRAM/NAND pricing expectations and AI hardware supply-chain sentiment.
Counterpoint
The note may underweight the risk that inventory/supply growth from Q4 compresses pricing faster than expected, limiting follow-through on earnings revisions.
Key entities
- financial_institutionMorgan Stanley
Issued the Asia technology equity report “Memory, A Small Bend” and reiterated targets for Samsung Electronics and SK Hynix.
- companySamsung Electronics
Morgan Stanley kept its target but cut FY2026 EPS forecast by 10%, citing slower post-Q4 price growth risk despite buybacks as a catalyst.
- companySK Hynix
Morgan Stanley kept its target and raised FY2026 EPS estimate by 13%, citing AI capex and shareholder returns.
