Key Takeaways
- Analyst Shawn Kim from Morgan Stanley identified Samsung’s sharp decline as an attractive entry point, with shares falling approximately 20% within a week
- Samsung’s performance lagged behind the KOSPI index, which dropped 17% during the identical timeframe
- The investment firm maintained Samsung as their preferred selection, highlighting HBM4 certification, SRAM technology, and foundry adaptability
- Korea JoongAng Daily reported the company’s Texas semiconductor facility, valued at $37 billion, has seen its mass production timeline delayed until early 2027
- Wednesday trading saw Samsung shares in Seoul plummet nearly 12%, following a 10% decline in the prior trading day
Samsung Electronics has endured significant market turbulence recently. Shares have plunged approximately 20% over the week, surpassing the 17% downturn experienced by the wider KOSPI benchmark.
The most recent setback originated from a Korea JoongAng Daily article released Tuesday. According to the publication, the commencement of full-scale manufacturing at Samsung’s Taylor, Texas location has been postponed once more — now targeting early 2027.
The massive $37 billion manufacturing complex was initially unveiled in 2021. Since its announcement, the project has encountered numerous schedule adjustments, even after securing substantial chip manufacturing agreements.
Among these contracts is an alleged $16.5 billion arrangement with Tesla. However, this substantial partnership hasn’t prevented the facility from experiencing continuous postponements.
Multiple informed sources were referenced in the publication. While preliminary operations have commenced, no definitive timeline for full production launch has been established.
Samsung disputed the characterization. Company representatives clarified to the publication that “production” refers to finalizing mass manufacturing preparations by the conclusion of 2026, positioning the facility for operational readiness at that point.
Previous communications had indicated second-generation 2-nanometer technology, designated SF2P, would reach mass production during the current year. That schedule now seems to have been extended.
Seoul-traded Samsung shares declined almost 12% to 172,100 won during early Wednesday trading. The previous session had already witnessed a 10% reduction.
Investment Firm Recommends Purchase
Amidst this challenging environment, Morgan Stanley analyst Shawn Kim released a more positive assessment. He characterized the market correction as presenting a favorable purchasing window.
“Historical patterns show such corrections typically present excellent buying opportunities,” Kim noted, emphasizing that profit projections retain “substantial potential for improvement.”
The financial institution retained Samsung as their premier recommendation. They simultaneously reaffirmed their favorable stance on SK hynix.
Morgan Stanley highlighted HBM4 approval status, SRAM technological capabilities, and foundry operational flexibility as justifications for maintaining confidence in the shares.
Kim additionally described an evolution in AI memory design. He indicated the industry is transitioning toward a hybrid approach as semiconductor technology becomes increasingly specialized.
Evolution in AI Memory Design
Although HBM continues to lead, Morgan Stanley indicated SRAM is establishing stronger positioning for applications where response time takes precedence over data throughput.
The institution anticipates Nvidia will introduce a novel inference processor at its forthcoming GPU Technology Conference. This processor would utilize a Language Processing Unit framework centered on substantial quantities of integrated SRAM.
Morgan Stanley characterized the design as “specifically engineered for the consecutive processing requirements of inference operations.” The firm stated this processor attracts clients prepared to invest in performance.
Kim presented this as a synergistic relationship rather than competitive forces. The perspective suggests SRAM manages critical execution pathways while HBM oversees expandable memory resources.
The firm additionally observed that LPU configurations might circumvent existing supply chain constraints affecting HBM and CoWoS packaging technologies.
Samsung shares were valued at 172,100 won during Wednesday morning trading, representing a nearly 12% session decline.
