Samsung Stock: Analysts Say “Samsung is Back” as Nvidia Deal Approaches

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TLDR

  • Samsung Electronics plans to repurchase $1.73 billion of its own stock from January 8 to April 7 to fund compensation for employees and executives
  • The company’s shares have added $350 billion in market capitalization since early last year and climbed 4% on Wednesday
  • Market analysts forecast that Samsung’s 2026 profits will more than double to a record $60 billion, driven by rising memory chip prices
  • Samsung is reportedly nearing an agreement to provide high-bandwidth memory chips to Nvidia
  • The company’s forward price-to-earnings multiple has fallen to 10x from over 25x in 2023

Samsung Electronics stated on Wednesday that it will acquire 2.5 trillion won of its own stock via open market purchases, with the program running from January 8 to April 7.

Samsung Electronics Co., Ltd. (005930.KS)

The repurchased shares will support a performance-based compensation plan for staff and management, which Samsung launched in October 2025.

This initiative follows a surge in Samsung’s share price, which gained 4% on Wednesday following comments from Nvidia CEO Jensen Huang about prospects in AI data storage sectors.

The company is scheduled to report preliminary earnings on Thursday, with analysts anticipating quarterly profits to more than double year-over-year.

The shares have gained $350 billion in market capitalization since the beginning of last year, representing a reversal after trailing competitor SK Hynix for three years.

Catching Up in the AI Race

Samsung is said to be close to finalizing an agreement to provide its newest high-bandwidth memory chips to Nvidia, which would represent a significant victory for the firm.

HBM chips are essential for AI applications. SK Hynix previously captured market share by winning Nvidia contracts, while Samsung has been striving to close the gap.

“Samsung was at a discount because it was left behind,” said Kang DaeKwun, chief investment officer at Life Asset Management. His fund has maximized its Samsung holdings heading into 2026.

The memory chip market is experiencing supply constraints. Strong demand for HBM has constrained manufacturing capacity for traditional memory products, an area where Samsung holds a dominant position.

Prices for conventional DRAM chips utilized in servers, PCs, and smartphones have increased. Citigroup analyst Peter Lee expects “a severe supply shortage in commodity memory in 2026.”

Lee has lifted his price target for Samsung to 200,000 won, which represents the most bullish forecast among analysts.

Record Profits Expected

Bloomberg-surveyed analysts project that Samsung will generate approximately $60 billion in profits for 2026, which would mark a record high and aligns with forecasts for Taiwan Semiconductor Manufacturing Co.

Samsung’s market capitalization stands at $560 billion, while TSMC’s valuation exceeds that figure by more than twofold.

Earnings forecasts for Samsung’s upcoming 12 months have risen 115% since September, surpassing the 88% increase for SK Hynix and 16% for TSMC.

The firm’s forward price-to-earnings ratio currently stands at 10x, down from a peak of over 25x in 2023.

“The current memory upcycle looks stronger than ones in the past,” said Vey Sern Ling, managing director at Union Bancaire Privee.

Samsung exhibited AI-powered televisions and other products at CES in Las Vegas this week. The company also aims to strengthen its foundry operations, though it remains significantly behind TSMC in that business area.

Some analysts warn that expectations may be overly elevated. Jung In Yun of Fibonacci Asset Management Global observed that while Samsung could exceed projections if it closes the HBM gap, “expectations are already high, maybe too optimistic.”

The share repurchase program forms part of Samsung’s compensation initiative launched in October 2025. The shares will be purchased on the stock exchange throughout the three-month timeframe.