Nomura raises target prices for Samsung Electronics and SK Hynix

According to a report by Nomura, AI driven demand is growing exponentially, memory supply is limited, and the industry is facing a supply-demand gap. Nomura has raised Samsung Electronics' target price from 340000 Korean won to 590000 Korean won, and SK Hynix's target price from 234 million Korean won to 4 million Korean won, both rated as "buy". The report points out that the demand for AI semiconductors has shifted from training to inference workloads, memory demand has entered exponential expansion, and the industry's supply growth is growing at a compound annual growth rate of about 30%, only six times, which is difficult to meet the demand. Nomura believes that existing optimization solutions can only slow down the expansion of the supply-demand gap and cannot reverse the trend.