Key Takeaways from NVIDIA GTC 2026 for South Korean Memory Suppliers Industry Overview - **Industry**: Semiconductors - Memory - **Companies Covered**: Samsung Electronics (SEC) and SK Hynix (Hynix) Core Insights 1. **NVIDIA's Chip Purchase Orders**: NVIDIA's CEO Jensen Huang expressed confidence that the Blackwell and Rubin chip purchase orders will exceed **US$1 trillion** by **2027**, which alleviates concerns regarding potential slowdowns in datacenter capital expenditures [4] 2. **Samsung's HBM Confidence**: SEC demonstrated increased confidence in its High Bandwidth Memory (HBM) business, sharing its **2026 HBM4 target**, HBM4E specifications, and a long-term roadmap extending to HBM5E. SEC plans to increase HBM production volume by more than **3x year-over-year** in 2026, with HBM4 expected to constitute over **50%** of this volume [4] 3. **Groq 3 LPU Introduction**: NVIDIA introduced the Groq 3 LPU, which is expected to have a low risk of cannibalizing GPU demand. This is seen as a positive development for SEC's foundry business, which is currently manufacturing the Groq 3 LPU using **4nm technology** [4] 4. **SK Hynix's U.S. ADR Listing Review**: SK Chairman Chey Tae-won announced that Hynix is considering a potential U.S. ADR listing, which could enhance access for global investors and potentially address valuation discounts compared to U.S. competitors like Micron [8] 5. **Memory Market Outlook**: Chey Tae-won anticipates that the chip supply shortage will persist through **2030**, and Hynix's CEO is expected to announce plans for DRAM price stabilization [9] Additional Important Points - **Valuation Comparisons**: Hynix shares are currently trading at a **41% price-to-book (P/B)** discount and a **56% price-to-earnings (P/E)** discount compared to Micron, indicating a significant valuation gap that could be addressed through the ADR listing [10][12] - **SEC's Long-term HBM Roadmap**: SEC plans to adopt a **2nm logic process** for base die starting from HBM5 and a **1d node** for core die starting from HBM5E, showcasing its commitment to advancing HBM technology [5] - **Foundry Performance Expectations**: There are expectations for improvements in SEC's foundry utilization rate (UTR) and operating profit margin (OPM) as it builds references in **4nm/3nm technology** [6] Risks and Methodology - **Samsung Electronics Risks**: Key risks include major deterioration in memory supply/demand, sharp contraction in smartphone margins, and potential loss of market share in mobile OLED [15] - **SK Hynix Risks**: Risks for Hynix include deterioration in memory supply/demand, weaker demand for conventional memory, and lower AI-related capital expenditures impacting HBM demand [17] Price Targets - **Samsung Electronics**: Target price for common shares is **W260,000** and for preference shares is **W200,000** [14] - **SK Hynix**: Target price is **W1,350,000** [16]