![Samsung Electronics' HBM Transformation: Target Price Soars on Yield Improvement [Click eJongmok]](https://www.europesays.com/korea/wp-content/uploads/2026/08/1788218479.png)
“Samsung Electronics Improves HBM4 Yield
Target Price Raised to 450,000 Won”
On September 1, LS Securities evaluated that concerns over mass production at Samsung Electronics are being alleviated, as the shipment share of HBM4, the next-generation high-bandwidth memory (HBM), increases and yield improves. The company raised its target price from 400,000 won to 450,000 won while maintaining its ‘Buy’ rating.
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Woosung Jung, a researcher at LS Securities, stated in a report released on this day, “The proportion of HBM4 within Samsung Electronics’ HBM shipments rose rapidly from around 5 percent in the first quarter of this year to approximately 35 percent in the second quarter.” He added, “Even though this is a period when the share of new products is rising sharply, HBM blended yield in the second quarter is estimated to have improved by more than 5 percentage points compared to the previous quarter.”
Researcher Jung said, “Unlike the initial mass production phase of HBM3E, Samsung Electronics appears to have secured relatively high mass production yield with HBM4.” He further analyzed, “If blended yield continues to improve as HBM4’s share grows, the pace at which increased HBM sales translate into overall corporate profitability may exceed previous expectations.”
Until now, Samsung Electronics’ HBM business has experienced valuation discount factors compared to competitors, mainly due to customer certification delays and low mass production yield. Researcher Jung said, “Now that both shipment composition expansion and yield improvement are simultaneously confirmed for HBM4, these discount factors are highly likely to gradually diminish.” He diagnosed, “Once HBM4 begins contributing more significantly to memory business profits, there will also be a positive structural change in the company’s profit model, which had previously relied on standardized DRAM.”
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Researcher Jung added, “Although memory supply shortages are expected to persist in the mid-to-long term, the increase in memory’s share of server budgets due to rising prices means additional room for further price hikes may be more limited than before.” He concluded, “In the mid-to-long term, the stock price direction will be more sensitive to the expansion of HBM4 supply and the speed of growth in new AI demand sources than to memory prices themselves.”
This content was produced with the assistance of AI translation services.
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