Barclays Raises Price Targets on SK Hynix and Samsung as Memory Demand Outlook Improves

TLDR

• SK Hynix stock jumped 12% on Monday, driven by foreign buying after strong U.S. tech earnings
• Major U.S. tech firms reaffirmed heavy AI data center investment plans last week
• Samsung lagged, weighed down by a threatened 18-day worker strike starting May 21
• Barclays raised price targets on both companies, citing a worsening memory supply-demand imbalance
• Citigroup cut Samsung expectations while analysts see SK Hynix as the relative winner

SK Hynix shares surged 12.5% on Monday, hitting a record high as foreign investors piled into South Korean chipmakers. Samsung Electronics also climbed, rising 5.4%, though it trailed its rival by a wide margin.

Samsung SDI Co., Ltd., 0L2T.L

The buying came after several major U.S. tech companies reported strong quarterly earnings last week and reaffirmed their capital spending plans for AI infrastructure. SK Hynix is a key supplier of high-bandwidth memory, the advanced chip type that powers AI accelerators.

Strong signals from U.S. tech on AI data center demand tend to move memory chip stocks quickly. SK Hynix has been one of the clearest beneficiaries of that trend.

Barclays issued a bullish note alongside Monday’s moves, raising its price target on SK Hynix’s Frankfurt-listed shares by more than 20%, from €900 to €1,100. It also lifted its target on Samsung’s London-listed stock from $4,000 to $4,250. Both stocks kept Overweight ratings.

The bank said the supply-demand imbalance in the memory market “shows no signs of improving any time soon.” It models global memory supply growing in the low twenties percent in both 2026 and 2027, but expects demand to accelerate faster, meaning the gap is unlikely to close in either year.

Barclays expects SK Hynix to remain the leader in high-bandwidth memory. It raised its earnings multiple for the stock to 6x 2026 estimates, up from 5x, aligning it more closely with how its U.S. team values Micron.

Samsung Faces Strike Threat

Samsung’s underperformance came down to labor risk. Its union held a large protest on April 23, demanding a bigger share of profits from the chip division. An offer from Samsung that included bonuses and wage increases was rejected.

The union has now threatened an 18-day work stoppage starting May 21 if no deal is reached. That threat is weighing on investor sentiment at a time when AI memory demand is strong.

Samsung said it plans to continue talks with the union and is prepared to manage any production disruption. But analysts are not convinced that will be enough.

Citigroup has already lowered its expectations for Samsung, citing potential costs from concessions or bonus schemes. Extra labor costs could squeeze margins in a division that has been posting strong profits from AI demand.

Barclays raised its Samsung revenue forecasts by around 8% for 2026 and 17% for 2027, with semiconductor pricing coming in stronger than expected. It modeled a tripling of Samsung’s high-bandwidth memory revenue in 2026.

SK Hynix Has the Edge Right Now

SK Hynix settled its own profit-sharing dispute with employees earlier, giving it a labor stability advantage now reflected in its stock price.

Other regional chipmakers also benefited Monday. MediaTek and ASE Technology Holding both saw stronger price performance as AI chip sentiment improved.

Barclays flagged China as a risk to watch, noting that Chinese memory players are expanding capacity and gaining ground in mid-to-low end smartphones, though the bank does not see this affecting the data center segment.

Citigroup’s downgrade of Samsung expectations and the rising analyst attention on SK Hynix as a relative winner were among the latest developments heading into the week.

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