Key Takeaways
- Shawn Kim from Morgan Stanley identified Samsung’s current downturn as a strategic buying moment, following a roughly 20% weekly decline
- The broader KOSPI benchmark dropped 17% during the same timeframe, showing Samsung’s relative weakness versus the market
- Despite market turbulence, Morgan Stanley maintains Samsung as their preferred investment, highlighting HBM4 progress, SRAM technology, and foundry adaptability
- According to Korea JoongAng Daily, Samsung’s massive $37 billion semiconductor facility in Texas faces another delay, with volume production now expected in early 2027
- Trading on the Seoul exchange, Samsung shares plummeted almost 12% on Wednesday following a 10% decline the day before
Samsung Electronics is experiencing significant market turbulence. The technology giant’s shares have fallen approximately 20% over the current trading week, declining more sharply than the KOSPI index’s 17% retreat.
Fresh selling pressure emerged following Tuesday’s Korea JoongAng Daily publication. The outlet revealed that full-scale manufacturing operations at Samsung’s Taylor, Texas semiconductor fabrication facility have been postponed once more — now targeting early 2027.
The massive $37 billion manufacturing complex was originally unveiled in 2021. Since its announcement, the project has experienced numerous schedule adjustments, even after securing substantial chip manufacturing agreements.
Among these agreements is an alleged $16.5 billion supply arrangement with Tesla. However, even this substantial partnership hasn’t prevented the facility from experiencing recurring postponements.
The publication referenced several individuals with direct knowledge of the situation. While preliminary pilot operations have commenced, no definitive production launch date has been established.
Samsung disputed aspects of the reporting. Company representatives clarified to the publication that “production” should be interpreted as finalizing preparations for large-scale manufacturing by late 2026, with the facility operational by that timeframe.
Previous projections indicated that second-generation 2-nanometer processors, designated SF2P, would begin volume production during this calendar year. That schedule now appears to have been extended.
Shares of Samsung traded on the Seoul exchange declined nearly 12% to 172,100 won during early Wednesday trading. This followed a 10% retreat in the prior session.
Morgan Stanley’s Bullish Perspective
Amid this challenging environment, Morgan Stanley’s Shawn Kim offered a contrasting viewpoint. His analysis suggests the recent price correction presents an attractive entry point.
“Historical patterns show such market corrections typically create favorable buying windows,” Kim noted, emphasizing that profit forecasts maintain “substantial upside potential for improvement.”
The investment bank continues to position Samsung as their premier recommendation. Morgan Stanley also maintains an optimistic stance on SK hynix.
Morgan Stanley highlighted several technological advantages supporting their positive outlook: HBM4 certification progress, SRAM manufacturing expertise, and foundry production versatility.
Kim additionally described an evolving transformation in artificial intelligence memory design. His analysis indicates the industry is transitioning toward hybrid solutions as processors become increasingly specialized.
Transformation in AI Memory Technology
Although HBM technology continues to lead, Morgan Stanley’s research suggests SRAM is capturing increased market share for applications prioritizing response time over data volume.
The firm anticipates Nvidia will introduce an innovative inference processor at its forthcoming GPU Technology Conference. This processor would employ a Language Processing Unit design incorporating substantial on-chip SRAM capacity.
Morgan Stanley characterized this design approach as “specifically engineered for inference’s sequential processing demands.” The analysis indicates this chip targets clients prioritizing performance premium.
Kim presented this development as mutually beneficial rather than competitive. The perspective suggests SRAM addresses high-priority computational tasks while HBM provides expandable memory resources.
Morgan Stanley also observed that LPU architectures might circumvent existing supply constraints affecting HBM and CoWoS packaging technologies.
As of Wednesday morning trading, Samsung stock exchanged hands at 172,100 won, reflecting an intraday decline approaching 12%.
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