KOSPI Nears 6900 as AGI Era Dawns, Semiconductor Stocks Surge—Samsung Electronics, SK Hynix Target Prices Repeatedly Raised

Nomura issued a report maintaining its target price of 670,000 won for Samsung Electronics and 4.7 million won for SK Hynix. On concerns over a potential breach of long-term supply agreements (LTAs) that had recently stirred controversy, it assessed that a simple breach would be difficult given the five-year contract terms, which include a 20% premium along with advance payment and penalty clauses, and said this actually supports earnings visibility. Domestically, Mirae Asset Securities raised its target price for SK Hynix from 2.8 million won to 3.1 million won and for Samsung Electronics from 370,000 won to 400,000 won.

Goldman Sachs summarized comments from a non-deal roadshow (NDR) with Samsung Electronics and maintained a buy rating with a target price of 490,000 won. The company reportedly stated that the memory supply shortage would persist through 2028, with demand fulfillment at only around 60% while demand continues to grow. It also explained that it is preemptively securing cleanroom capacity while executing actual equipment investment cautiously based on confirmed demand.

The company also reportedly stated its goal of raising the share of long-term supply contracts to 60-70% of its total production plan, which was interpreted as an effort to make future demand more predictable and reduce investment volatility. It was also suggested that being the only company capable of operating both memory and foundry businesses simultaneously would become a key competitive advantage as customized customer demand increases going forward.

Finally, the company reaffirmed its existing policy of returning 50% of cumulative free cash flow from 2024-2026 to shareholders, stating that it is reviewing all options, including early dividend execution and share buybacks. However, the market pointed out that the gap between the current share price and actual earnings levels is unusually large, with the assessment that while earnings and valuation provide support, a re-rating will require the company to follow through with active shareholder returns and transparent communication.

Amid expectations of expanding power demand from AI data centers, solid oxide fuel cell and hydrogen energy-related stocks such as Doosan Fuel Cell and Bumhan Fuel Cell rallied. Doosan Fuel Cell surged more than 17%, a contrasting move from earlier when its stock plunged more than 10% on the very day news broke of a roughly 50 billion won fuel cell order win in the U.S. Bloom Energy, a U.S. peer, also saw its stock strengthen recently after citing strong sales in its earnings release.

Regarding Doosan Enerbility, the largest shareholder of Doosan Fuel Cell, additional news during the broadcast that SpaceX is pursuing a large combined-cycle power plant using Doosan Enerbility's generation equipment drove broad gains across related stocks. Demand spread further to on-site power generation, cables, power equipment, and nuclear power-related stocks.

The NCR project, cited as the No. 1 project for U.S.-bound investment, raised expectations with an increase in project cost and a scheduled report to the National Assembly on the same day. However, it was noted that the special purpose company (SPC) structure has not yet been clearly finalized, requiring confirmation of whether it can actually translate into U.S.-bound revenue. Given the high volatility of power and energy-related stocks, advice was offered to take a long-term approach such as staggered buying rather than short-term trading based on news.