Investors haven't had the best of time being long on Samsung Electronics stock recently as the lack of a catalyst has kept prices subdued. Concerns about the company's challenges in the semiconductor market have also impacted prices, and with no clear path out of the quagmire just yet, investors aren't willing to push the stock any higher.
However, there appears to be some cautious optimism from investors, as the Samsung stock has now recovered to the 60,000 won (~$40) range. It's hit this trading range after five months on the back of hopes that demand for memory chips will increase across the smartphone and PC segments.
Investors become cautiously optimistic about Samsung stock
Samsung Electronics stock has traded up in multiple sessions this week, rising another 2.9% on Thursday and closing out the session at 60,200 won. This is the first time that the stock price has breached the 60,000 won limit since October 2024.
The stock still has a lot of catching up to do from the high of 87,800 won (~$60) in July 2024. It has consistently declined since then, hitting a 4-year low at one point in November 2024, as investors grew increasingly concerned about the lack of progress on major high-bandwidth memory orders and yield issues at the foundry.
Investors are now pricing in a demand recovery for memory chips, with an expectation that average selling prices for DRAM and NAND flash products will increase, thereby helping Samsung recoup some of the billions that it has lost in revenues over the past year. Some are also holding out on hope that Samsung will ultimately win orders for its HBM3E memory modules from NVIDIA, though that seems easier said than done at this stage.
Making a case for the bulls to get behind this stock, major US investment bank Morgan Stanley has already raised its price target for Samsung Electronics stock this week to 70,000 won.
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