Shares in SK Hynix and Samsung Electronics climbed to new record levels on Monday as foreign investors moved to expand positions in South Korean memory and semiconductor businesses after a spike in AI data centre investment commitments from major U.S. technology firms last week.
SK Hynix led the gains, jumping 12.5%, while Samsung Electronics rose 5.4%. Investors added to SK Hynix at a faster clip, with Barclays later reinforcing the momentum in a research note that lifted targets on the firms' European-listed securities and reiterated Overweight ratings on both names. The bank cited an enduring imbalance between demand and supply in the memory market as a primary rationale.
Analyst moves and target changes
Barclays increased its price target for SK Hynix's Frankfurt-listed shares to 1,100 from 900, an uplift of more than 20%. For Samsung's London-listed stock, the bank raised its target to $4,250 from $4,000. These target changes accompanied a broader set of forecast revisions and valuation adjustments intended to reflect what Barclays sees as a tightening market for memory products.
The bank said global bit supply is modeled to grow in the low twenties percent in 2026 and at a similar pace in 2027, yet it expects demand growth to accelerate as well. Barclays therefore judged that new capacity coming online in those years would be unlikely to materially close the gap between supply and demand.
For SK Hynix specifically, Barclays expects the company to remain the leader in high bandwidth memory, or HBM, which is central to AI accelerator demand. The bank moved to a 6x 2026 earnings multiple for SK Hynix, up from 5x previously, aligning that multiple broadly with the one used by its U.S. semiconductor team for a comparable peer.
Barclays also pointed to a potential American depositary receipt, or ADR, listing of SK Hynix as an additional factor that could support a re-rating of the stock.
Revisions to Samsung forecasts
On Samsung, Barclays raised revenue forecasts by about 8% for 2026 and roughly 17% for 2027, reflecting semiconductor pricing that has held up stronger than the bank had anticipated. Barclays modeled a tripling of Samsung's HBM revenue in 2026 and said the company appeared to be executing on its expansion into that market.
Not all areas of Samsung's business are expected to be robust. Barclays trimmed handset unit estimates and now models handset shipments declining 12% in 2026, identifying mobile as a softer segment in its outlook.
Risks and market considerations
Barclays flagged China as a risk to watch. After a recent visit, the bank said Chinese memory players are rapidly expanding capacity and making inroads in mid-to-low end smartphones. However, Barclays does not expect these moves to affect the data centre segment.
Separately, Samsung's share performance faced a potential labor-related overhang: the company has been weighed by the risk of a possible strike by unionised workers seeking a larger portion of AI-driven profits.
Overall, Barclays analysis points to a market environment where memory content for data centre architectures increases materially by 2027, supporting stronger revenue trajectories for major memory suppliers. Foreign investor participation and the bank's price-target lifts helped lift market sentiment and push both stocks to record highs.
Key points
- SK Hynix surged 12.5% and Samsung Electronics rose 5.4% as foreign investors bought into South Korean chipmakers after AI data centre investment commitments.
- Barclays raised price targets on European-listed SK Hynix and Samsung shares and reiterated Overweight ratings, citing a persistent memory supply-demand imbalance and accelerating demand for HBM.
- Barclays increased Samsung revenue forecasts for 2026 and 2027 and raised SK Hynix's valuation multiple to 6x 2026 earnings, while also noting mobile handset weakness and China-related capacity risks.
Risks and uncertainties
- Potential impact from Chinese memory players expanding capacity and taking share in mid-to-low end smartphones - may affect competitive dynamics in those markets.
- Labour risk at Samsung, including the possibility of a strike by unionised workers seeking a larger share of AI-related profits, which could weigh on operations or sentiment.
- The modeled expansion of global bit supply, even if large, may not close the gap with accelerating demand in 2026-27, leaving prices and margins sensitive to supply-demand fluctuations.