Samsung Electronics and SK Hynix face shifting HBM4 competition

LS Securities has adjusted its target prices for major South Korean memory chipmakers as the competition in the next-generation High Bandwidth Memory (HBM4) market enters a new phase.

Samsung Electronics has seen its target price raised from 400,000 won to 450,000 won. This upward revision is driven by expectations of improved production stability and increased shipments of HBM4, which reportedly grew from a 5% share of HBM shipments in Q1 to approximately 35% in Q2. Improved yields in HBM4 are expected to accelerate Samsung’s overall profitability.

Conversely, the target price for SK Hynix has been lowered from 3.3 million won to 2.4 million won. While long-term demand remains positive, analysts suggest that Samsung’s return to the market may lead to customer diversification, reducing the supply concentration premium SK Hynix previously enjoyed. Additionally, the projected HBM operating profit margin for SK Hynix was revised down to around 60% to reflect a more competitive landscape and to ensure sustainable AI infrastructure investment by major customers.