Samsung Electronics and SK hynix. Yonhap News
Goldman Sachs has sharply raised its medium- to long-term earnings outlook for Samsung Electronics (005930.KS) and SK hynix (000660.KS) in just a month, citing surging demand for high-bandwidth memory (HBM) driven by expanding artificial intelligence (AI) investments and a commodity memory boom expected to last longer than anticipated. Goldman Sachs projected 2028 annual operating profit of 610 trillion won for Samsung Electronics and 454 trillion won for SK hynix, putting the combined total well above 1,000 trillion won.
According to the financial investment industry on Wednesday, Goldman Sachs said in a report released on October 31 (local time) that “the DRAM, NAND, and HBM market has entered a ‘Higher for Longer’ phase, in which the boom lasts longer than expected,” and raised its earnings forecasts and price targets for Samsung Electronics and SK hynix. The investment bank set price targets of 450,000 won for Samsung Electronics and 3.5 million won for SK hynix, while maintaining a “Buy” rating on both stocks.
What stands out is that Goldman Sachs sharply raised the operating profit estimates it had presented just a month earlier. The magnitude of the upward revisions grows larger when looking further out to this year, 2027, and 2028, suggesting the firm does not expect the memory market to peak anytime soon.
Goldman Sachs forecast Samsung Electronics’ annual operating profit at 374 trillion won this year, 530 trillion won in 2027, and 610 trillion won in 2028. Compared with the estimates from a month earlier, this year’s figure was raised by only 5.4 percent, but the 2027 and 2028 estimates were lifted by 21.0 percent and 23.3 percent, respectively.
The outlook for SK hynix is equally aggressive. Goldman Sachs expects SK hynix’s operating profit to reach 271 trillion won this year, 401 trillion won in 2027, and 454 trillion won in 2028. The upward revision compared with previous estimates expanded from 3.7 percent this year to 21.4 percent in 2027 and 24.0 percent in 2028. The investment bank views profitability at both companies as set to rise more steeply over time, as the memory super cycle is prolonged.
The report has drawn attention because it directly counters the “memory peak-out” concerns that have recently surfaced in the market. With shares of both companies rising sharply, the market has felt the burden of high valuations and there have been persistent forecasts that the HBM boom driven by expanding AI investments could slow in the second half of this year or after next year. Cited reasons included the expansion of HBM supply and the possibility that big tech firms may pace their AI investments.
However, Goldman Sachs reaffirmed that the boom will be prolonged not only in HBM but also in commodity DRAM and NAND. The firm also drew attention to the possibility of a re-rating across the memory sector. It analyzed that not only will earnings improve, but the valuation multiples applied to memory makers could also expand.
Within the memory segment, NAND flash operating profit is expected to rise more than previously projected. Goldman Sachs raised its operating profit estimates for Samsung Electronics’ Device Solutions (DS) division by 21.9 percent for 2027 and 24.1 percent for 2028 compared with previous projections.
In particular, the NAND operating profit estimate was raised by as much as 31.6 percent for 2028 compared with the previous forecast. SK hynix’s NAND operating profit estimate was also raised by 36.8 percent for 2028. Accordingly, Goldman Sachs upgraded its investment opinion on Kioxia, the Japanese NAND flash memory chipmaker, to “Buy.”
