Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **South Korean memory industry**, focusing on companies like **Nvidia (NVDA)**, **SK Hynix**, and **Samsung Electronics (SEC)** [1][4]. Nvidia's Performance - Nvidia reported **3QFY26** earnings with a revenue of **US$57 billion**, representing a **22% quarter-over-quarter increase**. This figure surpassed both Goldman Sachs' estimate of **US$55.6 billion** and the consensus estimate of **US$55.4 billion** [1]. - Data Center revenue reached **US$51.2 billion**, exceeding Goldman Sachs' estimate of **US$49.4 billion** and the Street's estimate of **US$49.7 billion** [1]. - For **4QFY26**, Nvidia guided revenue and gross margin above market expectations, with a midpoint revenue guidance of **US$65 billion**, exceeding Goldman Sachs' estimate of **US$63.2 billion** and consensus of **US$62.4 billion** [1]. - Nvidia anticipates reaching **US$500 billion** in sales for its Blackwell and Rubin platforms from the start of **2025** until the end of **2026**, with the Rubin platform expected to ramp up in the second half of **2026** [1]. Memory Market Insights - Strong demand for Nvidia's GPUs is expected to positively impact the **High Bandwidth Memory (HBM)** market, with significant growth anticipated for both **SK Hynix** and **Samsung Electronics** in **2026** [4]. - The estimate for **Hynix's HBM bit shipments** has been raised by **18%** to **19 billion Gb**, reflecting a **47% year-over-year increase** from a previous estimate of **16 billion Gb** [4]. - Samsung Electronics is projected to see a **126% year-over-year growth** in HBM bit shipments, reaching over **10 billion Gb** in **2026** [4]. Role of Memory in AI Infrastructure - Memory is deemed crucial for building AI infrastructure, with suppliers expected to benefit from various memory products, including **DDR**, **LPDDR**, and **GDDR**, in addition to HBM [4]. Long-term Contracts and Pricing Trends - Due to tight supply conditions, there is a higher likelihood of customers entering long-term contracts with memory suppliers for both HBM and conventional memory to protect their margins [5]. - Pricing for memory products has been rising significantly over the past few months, driven by supply constraints, particularly for **LPDDR DRAM** used in multiple applications [4][5]. Price Targets and Risks - **Samsung Electronics** has a 12-month target price of **W123,000** for common shares and **W99,000** for preference shares, rated as **Buy** for both [6]. - **SK Hynix** has a 12-month target price of **W700,000**, also rated as **Buy**, with a **30% AI premium** factored into the valuation [8]. - Key risks for both companies include a major deterioration in memory supply/demand, smartphone margin contractions, and potential market share losses in mobile OLED [7][9]. Conclusion - The conference call highlights a positive outlook for the South Korean memory industry, driven by strong demand from Nvidia and the growing importance of memory in AI applications. The anticipated growth in HBM shipments for both SK Hynix and Samsung Electronics reflects a robust market environment, although risks related to supply and demand dynamics remain pertinent.