Morgan Stanley cuts Samsung and SK hynix targets over post-2028 memory risks
Morgan Stanley lowered its target price for Samsung Electronics to 309,000 won from 381,000 won and for SK hynix to 1.6 million won from 2.6 million won in a report issued November 9. The bank still rates both companies Overweight and raised its 2027 operating profit forecasts to about 688 trillion won for Samsung Electronics and about 468 trillion won for SK hynix. Morgan Stanley’s longer-term caution centers on rising memory supply and delayed data-center construction, which it says could pressure margins after 2028.
Why it matters
The target-price reductions indicate that Morgan Stanley expects future valuation and profitability to weaken despite stronger near-term earnings forecasts. Its report lowers SK hynix’s average operating-margin outlook for 2029–2035 to 28% from 53%, creating a more negative long-term view for memory-chip returns.
Key facts
- 1Morgan Stanley reduced SK hynix’s target price to 1.6 million won from 2.6 million won and Samsung Electronics’ target price to 309,000 won from 381,000 won. finance.biggo.com
- 2Morgan Stanley kept Overweight ratings on both Samsung Electronics and SK hynix and made Samsung Electronics its semiconductor top pick. biz.chosun.com
- 3The bank expects roughly 5 gigawatts (GW) of data-center projects planned for 2028 to move to 2029, while its 2028 global data-center new-equipment growth forecast fell to 9% from 21%. biz.chosun.com
- 4Morgan Stanley projects SK hynix’s average operating margin at 28% during 2029–2035, compared with a previous average of 53%. biz.chosun.com
- 5The bank cut its 2027–2028 HBM operating-margin outlook to about 70% for SK hynix and 65%–72% for Samsung Electronics. biz.chosun.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.