Goldman Sachs Lifts Targets on Samsung, SK Hynix, Kioxia as AI Reshapes Memory Industry

Goldman Sachs upgraded price targets for Samsung Electronics (005930-KR), SK Hynix, and Kioxia Holdings in a June 1 report, citing a structural shift in the memory industry from cyclical commodity to strategic AI infrastructure. The bank expects supply deficits to persist through 2028 and valuation models to transition from price-to-book to price-to-earnings. The analysts see the HBM market surging 54% above prior estimates to $116 billion by 2027. DRAM supply gaps are forecast to worsen from -5.0% in 2026 to -5.9% in 2027, while NAND shortfalls remain tight. Memory stocks currently trade at 7.3 times forward earnings, a 50–80% discount to TSMC, which Goldman says will narrow as long-term agreements (LTAs) lock in stable cash flows. SK Hynix was raised to 330,000–350,000 won with a buy rating, Samsung to 480,000 won, and Kioxia to 93,000 yen, also raised to buy. Goldman noted Samsung’s 2026 operating profit may surge eightfold, while SK Hynix can sustain 40% margins even with 30% price drops. Morgan Stanley and JPMorgan have voiced similar views, though analysts cautioned that LTA enforceability remains key to avoiding a return to cyclical swings.