The stock prices of Samsung Electronics and SK Hynix have fallen sharply by 23% and 35% respectively in the past month. The market is concerned about the decline in HBM's price increase momentum, NAND oversupply, and competitors' accelerated production expansion. However, Goldman Sachs believes that the relevant shortfall has been excessively amplified. Currently, memory inventories are still low, supply continues to be tight, and long-term contract terms and shareholder returns are also beneficial to suppliers, so it reaffirms the “buy” rating of the two companies. The stock prices of Samsung Electronics and SK Hynix fell 23% and 35% respectively in the past month, causing the expected price-earnings ratio of both companies in 2027 to about 3.5 to 3.6 times, and the net price-earnings ratio of only 1.4 to 1.6 times. However, judging from HBM supply and demand, long-term supply agreements, industrial inventory, NAND demand, and competition, fundamentals have not deteriorated enough to support such pessimistic valuations. Goldman Sachs estimates that the combined average sales price of Samsung and SK Hynix HBM in 2027 will rise by about 87% and 100% year on year, respectively, and both are close to $2.9 per GB. Among them, SK Hynix's forecast is about 24% higher than the market consensus. The key behind this is still a shortage of supply. In particular, as the process is upgraded, the number of stacked layers increases, and the difficulty of improving yield increases, the rate of expansion of HBM production is limited, and the gap between supply and demand next year may be more serious than this year.

The stock prices of Samsung Electronics and SK Hynix have fallen sharply by 23% and 35% respectively in the past month. The market is concerned about the decline in HBM's price increase momentum, NAND oversupply, and competitors' accelerated production expansion. However, Goldman Sachs believes that the relevant shortfall has been excessively amplified. Currently, memory inventories are still low, supply continues to be tight, and long-term contract terms and shareholder returns are also beneficial to suppliers, so it reaffirms the “buy” rating of the two companies. The stock prices of Samsung Electronics and SK Hynix fell 23% and 35% respectively in the past month, causing the expected price-earnings ratio of both companies in 2027 to about 3.5 to 3.6 times, and the net price-earnings ratio of only 1.4 to 1.6 times. However, judging from HBM supply and demand, long-term supply agreements, industrial inventory, NAND demand, and competition, fundamentals have not deteriorated enough to support such pessimistic valuations. Goldman Sachs estimates that the combined average sales price of Samsung and SK Hynix HBM in 2027 will rise by about 87% and 100% year on year, respectively, and both are close to $2.9 per GB. Among them, SK Hynix's forecast is about 24% higher than the market consensus. The key behind this is still a shortage of supply. In particular, as the process is upgraded, the number of stacked layers increases, and the difficulty of improving yield increases, the rate of expansion of HBM production is limited, and the gap between supply and demand next year may be more serious than this year.