Key Takeaways
- Analyst Shawn Kim from Morgan Stanley identified the recent Samsung selloff as an attractive entry point, following a roughly 20% decline week to date
- Samsung’s performance lagged behind the KOSPI index, which fell 17% during the same timeframe
- Morgan Stanley maintained Samsung as a preferred investment, highlighting HBM4 qualification progress, SRAM technology, and adaptable foundry operations
- Korea JoongAng Daily reported Samsung’s $37 billion Texas semiconductor facility timeline extended to early 2027 for mass production
- Wednesday trading saw Seoul-listed Samsung shares decline almost 12%, following a 10% drop in the prior session
Samsung Electronics experienced significant market turbulence this week. Shares declined approximately 20% week to date, surpassing the broader KOSPI index’s 17% retreat.
Recent selling pressure intensified following a Tuesday report from Korea JoongAng Daily. The publication indicated that mass production at Samsung’s Taylor, Texas manufacturing site has received another timeline extension to early 2027.
The $37 billion semiconductor facility was originally unveiled in 2021. Since that announcement, the project has encountered several schedule adjustments, even after securing substantial chip supply agreements.
Among these agreements is a purported $16.5 billion arrangement with Tesla. This significant contract has failed to prevent ongoing schedule revisions.
The Korea JoongAng Daily report referenced multiple informed sources. While pilot operations have commenced, a definitive mass production commencement date remains unestablished.
Samsung disputed the report’s characterization. Company representatives told the publication that “production” refers to completing mass manufacturing preparations by late 2026, positioning the facility for operational readiness at that time.
Previous communications indicated second-generation 2-nanometer chips, designated SF2P, would reach mass production this year. Current circumstances suggest this timeline has been revised.
Samsung shares traded on the Seoul exchange dropped nearly 12% to 172,100 won by early Wednesday morning. The previous trading session had already recorded a 10% decline.
Morgan Stanley Maintains Positive Outlook
Amid these market conditions, Morgan Stanley analyst Shawn Kim presented a more favorable perspective. He characterized the correction as creating an advantageous buying window.
“Historically, such corrections have offered a good opportunity to buy,” Kim wrote, adding that earnings expectations still have “a lot of room for recovery.”
The investment firm preserved Samsung’s position as its preferred selection. Morgan Stanley simultaneously reaffirmed its constructive stance on SK hynix.
Morgan Stanley highlighted HBM4 qualification achievements, SRAM technological capabilities, and foundry operational adaptability as supporting factors for maintaining confidence in the stock.
Kim additionally described an evolution in AI memory architecture. He indicated the market is transitioning toward a hybrid approach as semiconductor designs become increasingly specialized.
Evolution in AI Memory Design
HBM technology continues to lead, though Morgan Stanley observed SRAM gaining traction for applications prioritizing latency performance over raw throughput.
The firm anticipates Nvidia will introduce a new inference chip at its forthcoming GPU Technology Conference. The processor would employ a Language Processing Unit architecture incorporating substantial quantities of on-chip SRAM.
Morgan Stanley described the architecture as “purpose-built for the sequential speed of inference.” It said the chip appeals to customers willing to pay for speed.
Kim presented this development as a synergistic relationship rather than competitive rivalry. The analysis suggests SRAM addresses high-speed execution requirements while HBM provides expandable memory capacity.
Morgan Stanley also observed that LPU architectures could circumvent existing supply constraints affecting HBM and CoWoS packaging resources.
Samsung shares stood at 172,100 won as of Wednesday morning, reflecting a session decline approaching 12%.
