Korea Investment & Securities: Samsung’s long-term memory chip contracts are expected to improve its earnings outlook

Golden Ten Data, July 31 — Korea Investment & Securities stated that Samsung Electronics is increasingly shifting towards long-term supply contracts for memory chips, which is improving profit visibility and supporting a stronger profit outlook. The brokerage added that, as memory chip prices soar, the company's second-quarter performance exceeded expectations, and new agreements with hyperscale cloud service providers are helping stabilize demand and capacity utilization. The brokerage raised Samsung's target price by 10% to 650,000 Korean won, reflecting improved profit prospects and the potential upside in HBM pricing, while maintaining a “Buy” rating.