Barclays upgraded its price targets for two leading memory companies in a Monday client note, citing stronger-than-expected demand for high-bandwidth memory (HBM) and more favorable pricing trends across the memory complex.
Analyst Simon Coles raised his target on Samsung to 8,300 won from 7,300 won, moving his valuation framework forward to 2027 estimates. Barclays said the new target implies roughly 50% upside potential, and noted that Samsung "has reportedly already shipped $1 billion of HBM4" as the company narrows the gap with competitors. The bank added that the foundry recovery appears to be "benefiting more from industry tightness than catching up on the technology front."
SK Hynix saw an even larger adjustment. Barclays increased its price objective to 2,900 euros from 2,300 euros, also based on 2027 estimates. Coles attributed the revision to HBM pricing tailwinds expected in 2027, calling the impact "another round of material upgrades" and citing revenue growth of more than 20% under the revised outlook. Barclays noted that the revised target for SK Hynix implies roughly 90% upside potential.
Beyond the individual company targets, Barclays pointed to Micron's recent results as further evidence that memory prices are rising. The bank said new disclosures of long-term agreements helped provide "more reassurance on pricing trends into the medium term."
Looking ahead, Barclays expects blended average selling prices (ASPs) to begin a modest decline in 2028 as supply additions accelerate, although it anticipates further tightening in 2027. The note framed any near-term sector weakness as a buying opportunity, reflecting the bank's continued bullish stance on AI-driven demand despite acknowledging rising volatility within the sector.
The updates reflect Barclays' positioning of its coverage around expected HBM demand and pricing dynamics through 2027, while flagging the potential for supply-driven ASP pressure beginning in 2028. Within that framework, Samsung and SK Hynix received the most pronounced target revisions, driven by reported HBM4 shipments and projected HBM pricing strength, respectively.
Market reaction and context
Barclays' note highlights the dual forces shaping memory stocks: nearer-term demand and pricing strength tied to HBM, and an eventual normalization of blended ASPs as new capacity comes online. The bank's updated targets and valuation roll to 2027 encapsulate those dynamics without changing the underlying caveat that supply additions could pressure prices from 2028 onward.