Surpasses 1 Million Won for the First Time Since Listing… Up 303% This Year
Regarded as the Biggest Beneficiary of the AI Semiconductor Supercycle
Rapidly Added to Semiconductor ETFs
Samsung Electro-Mechanics has surpassed 1 million won, joining the ranks of ’emperor stocks.’ Since the beginning of this year, shares of Samsung Electro-Mechanics have surged more than 300%, with the company delivering solid earnings and being highlighted as a key beneficiary of the artificial intelligence (AI) semiconductor boom. As Samsung Electro-Mechanics emerges as a central player in the AI semiconductor value chain, it is being rapidly included in semiconductor exchange-traded funds (ETFs).
According to the Korea Exchange on May 14, Samsung Electro-Mechanics closed at 1,029,000 won the previous day, thus achieving emperor stock status. The stock jumped more than 7%, surpassing 1 million won for the first time since its listing.
Samsung Electro-Mechanics has experienced a steep share price rally throughout this year, soaring by 303.53%. Starting the year at around 270,000 won, the stock exceeded 400,000 won in February, broke through 500,000 won in April, and then surged past 800,000 won. At the beginning of this month, it reached 900,000 won, and has now climbed to the 1 million won mark.
As a supplier of key AI components, Samsung Electro-Mechanics is regarded as the biggest beneficiary of the AI semiconductor supercycle, causing its market value to soar. Lee Changmin, a research analyst at KB Securities, noted, “Explosive improvements in performance are expected as the strong profitability of AI core components, such as multilayer ceramic capacitors (MLCC) and flip-chip ball grid arrays (FC-BGA), is rapidly being reflected in earnings.”
Amid growing demand, the company has boosted its capital expenditures (CAPEX), securing mid- to long-term growth prospects. Park Joonseo, a research analyst at Mirae Asset Securities, stated, “CAPEX for Samsung Electro-Mechanics is projected to approach 3 trillion won this year, and this trend is expected to continue for several years. Reflecting the significant CAPEX increase, the mid-to-long-term growth potential of FC-BGA for AI servers and networks, as well as AI MLCC, and the price increases of FC-BGA and MLCC, we have revised our target price upward by 145%, from 530,000 won to 1,300,000 won.”
As Samsung Electro-Mechanics cements its position as a core supplier in the AI semiconductor value chain, ETFs are increasingly adding the stock to their portfolios. The previous day, Samsung Asset Management announced a remodeling of its ‘KODEX AI Semiconductor,’ the largest AI semiconductor-themed ETF in Korea. Through this remodeling, KODEX AI Semiconductor will be renamed ‘KODEX AI Semiconductor TOP2 Plus,’ with increased weightings for Samsung Electronics and SK hynix, and Samsung Electro-Mechanics newly included in the portfolio. A Samsung Asset Management official commented, “Samsung Electro-Mechanics is recognized as a central pillar of the AI semiconductor value chain, going beyond just a component manufacturer, and is expected to play a key role in generating excess returns for the ETF going forward.”
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Mirae Asset Global Investments has also newly added Samsung Electro-Mechanics and SK Square to its ‘TIGER Semiconductor TOP2 Covered Call Active’ ETF in the regular May rebalancing. A Mirae Asset official said, “With the addition of Samsung Electro-Mechanics and SK Square, the number of stocks included in the TIGER Semiconductor TOP2 Covered Call Active ETF has expanded from 10 to 12. Exposure to memory semiconductors has been strengthened through SK Square, while the benefits of MLCCs and packaging substrates for AI servers are reflected through Samsung Electro-Mechanics. The ETF has expanded its investment scope across the entire semiconductor value chain, enhancing its ability to capture growth opportunities.”
This content was produced with the assistance of AI translation services.
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