Samsung Bulls Bet Record Earnings Will Extend $350 Billion Rally

Core Viewpoint - Samsung Electronics Co. has seen a stock rally adding $350 billion in market value since the start of last year, with bullish analysts predicting record profits driven by advancements in AI and significant price increases for memory chips [1] Group 1: Stock Performance and Market Sentiment - Samsung shares have outperformed those of SK Hynix Inc. in 2026 after three years of underperformance, with analysts suggesting that "Samsung is back" due to expectations of progress in AI [1][2] - The stock rose as much as 4% following comments from Nvidia's CEO about a "completely unserved" market for AI data storage, ahead of a preliminary earnings report expected to show a more than doubled quarterly profit [2] Group 2: Earnings Projections - Analysts estimate Samsung's earnings will more than double in 2026 to a record high of about $60 billion, comparable to projections for Taiwan Semiconductor Manufacturing Co. [4] - Despite this, Samsung's market capitalization of $560 billion remains less than half that of TSMC, the most valuable company in Asia [4] Group 3: Catalysts for Growth - Samsung is reportedly close to a deal to supply the latest high-bandwidth memory chips to Nvidia, which could enhance its valuation [5] - There is a significant demand for high-bandwidth memory (HBM), which has impacted production capacity for conventional memory products, leading to soaring prices for legacy DRAM used in traditional servers, PCs, and smartphones [5] - Citigroup analyst Peter Lee anticipates a severe supply shortage in commodity memory in 2026, with price growth expected to accelerate due to AI-related usage, raising his price target for Samsung to a street-high of 200,000 won [6] Group 4: Product Innovations and Business Outlook - Samsung's presentation of new AI-enabled products at the CES technology conference has generated positive buzz, indicating potential for future growth [7] - There are expectations for improvement in Samsung's foundry business, although it still lags behind TSMC [7]