– Samsung Electronics to Begin HBM3 Production and Delivery in Q2
Samsung Electronics is set to commence HBM3 production and customer delivery in the second quarter of this year as planned.
In a market environment where computational demands from AI and machine learning are skyrocketing, HBM (High Bandwidth Memory) products have become a core driver of growth in the semiconductor industry.
Recent demand for HBM3 is acting as a barometer for the recovery of the memory semiconductor market.

• Surging Demand for Custom HBM and Changes in Customer Needs
  Not only NVIDIA, but also major U.S. and Chinese tech companies are demanding 'custom HBM' optimized for their AI and cloud servers.
  The industry is shifting from 'standard specifications' to 'bespoke production for VIPs.'
  This shift places a greater emphasis on technological prowess and production capabilities than simply supplying large quantities.

– Expected Scenario Upon Actual Delivery
If Samsung Electronics’ large-scale HBM3 supply to NVIDIA is officially confirmed, the evaluation from global investors and institutions will immediately change.
In terms of stock price, there could be an upward range towards ₩65,000 to ₩70,000 (based on the first half of 2024).
The ‘realization of improved earnings’ from DRAM and HBM profitability will be accelerated.

• Formation of Meaningful Price Bands in the Market
  If HBM momentum continues, major semiconductor stocks centered around Samsung Electronics could gain further upward momentum within the year.
  In the short term, expect earnings surprises, and in the medium to long term, expect a structural level-up alongside the expansion of the AI industry.

– Turnaround Already Confirmed
As of the first half of 2024, the global semiconductor industry has entered a clear ‘turnaround’ phase.
In particular, a combination of factors such as memory price rebounds, inventory depletion, and recovery in downstream industries (cloud, AI, automotive, etc.) are positively contributing.

• Expectations for Additional Growth and Innovation Momentum
  The emergence of deep cycles and new growth axes such as AI and cloud is anticipated.
  In addition to HBM3, there remains the potential for expanding the portfolio with DDR5, 5G, automotive semiconductors, and more.
  Overall, the market has 'limited downside risk' and is open to further upside potential.

• Risk Factors
  Macro risks such as renewed U.S.-China technology disputes and global economic slowdown (China/Europe) persist.
  However, at this point, the focus is more on 'riding the trend for additional level-ups' rather than short-term earnings shocks.

1) Expected strong recovery in the memory semiconductor industry due to HBM3 supply expansion + increased custom orders from Big Tech.
2) Samsung Electronics’ stock price could rise to the ₩65,000 ~ ₩70,000 level if large-scale HBM3 supply to NVIDIA is officially announced.
3) Additional upside potential for semiconductor stocks can be explored with the expansion of new markets such as deep learning, AI, and automotive.
4) Downside risk is limited due to a structural turnaround, and earnings momentum is expected to continue in the second half.

Samsung Electronics’ HBM3 Supply Expansion and Semiconductor Industry Outlook for 2024

As Samsung Electronics expands its full-scale HBM3 supply in Q2 2024, key growth drivers such as AI, deep learning, flagship memory, and global supply and demand improvements are highlighted. Custom HBM demand is surging among cloud and Big Tech companies, and the possibility of large-scale NVIDIA supply is also promoting stock price level-ups. The industry’s turnaround has already been confirmed, and additional innovative markets (deep learning, new growth semiconductors, etc.) are also emerging as momentum in the second half. Although there are risks such as U.S.-China technology disputes, the semiconductor sector overall is open to upside potential. Samsung Electronics’ stock price is expected to range from ₩65,000 to ₩70,000.