Barclays Increases Price Targets for SK Hynix and Samsung as Memory Demand Outlook Improves

TLDR

• SK Hynix stock surged 12% on Monday, driven by foreign buying following strong U.S. tech earnings
• Major U.S. tech firms reaffirmed their substantial AI data center investment plans last week
• Samsung lagged behind, pressured by an 18-day worker strike threatened to begin May 21
• Barclays increased price targets for both companies, citing a worsening memory supply-demand imbalance
• Citigroup lowered its outlook for Samsung while analysts view SK Hynix as the relative beneficiary

---

(SeaPRwire) –   SK Hynix shares jumped 12.5% on Monday, reaching a record high as foreign investors increased their positions in South Korean chipmakers. Samsung Electronics also advanced, gaining 5.4%, though it significantly underperformed compared to its rival.

Samsung SDI Co., Ltd., 0L2T.L

The buying activity followed strong quarterly earnings reports from several major U.S. technology companies last week and their reaffirmation of significant capital expenditure plans for AI infrastructure. SK Hynix is a key supplier of high-bandwidth memory chips that power AI accelerators.

Strong signals from U.S. technology companies regarding AI data center demand typically have an immediate impact on memory chip stocks. SK Hynix has been one of the primary beneficiaries of this trend.

Barclays issued an optimistic research note alongside Monday’s market moves, raising its price target for SK Hynix’s Frankfurt-listed shares by over 20%, from €900 to €1,100. The bank also increased its target for Samsung’s London-listed stock from $4,000 to $4,250. Both stocks maintained Overweight ratings.

The bank stated that the supply-demand imbalance in the memory market “shows no signs of improving in the near future.” Barclays models global memory supply growing in the low twenties percent for both 2026 and 2027, but expects demand to accelerate at a faster rate, meaning the gap is unlikely to narrow in either year.

Barclays anticipates SK Hynix will maintain its leadership position in high-bandwidth memory. It raised its earnings multiple for the stock to 6x 2026 estimates, up from 5x, bringing it closer to how its U.S. team values Micron.

Samsung Faces Strike Threat

Samsung’s weaker performance was primarily due to labor risks. Its union held a large protest on April 23, demanding a larger share of profits from the semiconductor division. An offer from Samsung that included bonuses and wage increases was rejected.

The union has now threatened an 18-day work stoppage starting May 21 if no agreement is reached. This threat is negatively impacting investor sentiment during a period of strong AI memory demand.

Samsung stated it plans to continue negotiations with the union and is prepared to manage any potential production disruptions. However, analysts remain skeptical that these measures will be sufficient.

Citigroup has already reduced its expectations for Samsung, citing potential costs from concessions or bonus schemes. Additional labor expenses could pressure margins in a division that has been achieving strong profits from AI demand.

Barclays raised its Samsung revenue forecasts by approximately 8% for 2026 and 17% for 2027, with semiconductor pricing performing stronger than anticipated. The bank projected Samsung’s high-bandwidth memory revenue would triple in 2026.

SK Hynix Has the Edge Right Now

SK Hynix secured a favorable resolution to its own profit-sharing dispute with employees earlier, giving it a labor stability advantage that is now reflected in its stock price.

Other regional chip manufacturers also benefited from Monday’s trading session. MediaTek and ASE Technology Holding both achieved stronger price performance as AI chip sentiment improved.

Barclays highlighted China as a risk to monitor, noting that Chinese memory producers are expanding capacity and gaining traction in mid-to-low end smartphones, though the bank does not anticipate this affecting the data center segment.

Citigroup’s downgrade of Samsung expectations and the growing analyst focus on SK Hynix as the relative winner were among the latest developments heading into the week.