[Click eStock] "Samsung Electronics, Foreigners 'Buy' · Potential for Stock Price Rebound"

Hana Securities stated on the 27th, "All four companies within NVIDIA's value chain?TSMC, SK Hynix, Advantest, and Samsung Electronics?are expected to see an increase in their gross profit margins this year and next year," adding, "It is a time to consider the possibility of foreign investors switching to net buying positions in Samsung Electronics and the potential for a stock price rebound."

Gross profit margin refers to the ratio of profit obtained after deducting the cost of goods sold from sales. It is a representative profitability indicator showing how much profit is earned from sales.

On the same day, researchers Lee Jaeman and Kim Daewook from Hana Securities said, "TSMC and SK Hynix have seen stock returns exceeding 40% since the beginning of the year, and Advantest has also risen by 17%. Samsung Electronics was the only one among these companies to decline by -3%, but its stock return turned positive after NVIDIA's earnings announcements in the last two quarters. The U.S. market interest rates are not rising further, nor is the dollar strengthening more," they forecasted.

Looking at the stock returns of other NVIDIA-related value chain companies as of last week, Vertiv Holdings (VRT) and Marvell (MRVL) showed relatively high returns of 10% and 7%, respectively. Synopsys (SNPS) and Super Micro Computer (SMIC) were relatively sluggish with 4% and -0.5%, respectively.

Researchers Lee Jaeman and Kim Daewook noted, "Although SMIC (212%) has seen a significant stock price increase since the beginning of the year, which could be viewed as short-term profit-taking, VRT and MRVL are expected to see increases in gross profit margins this year and next year, SNPS is expected to remain stagnant, and SMIC is expected to decline. As NVIDIA, a company with a strong monopoly character, is likely to reach a peak in its gross profit margin, whether the supply companies' profit margins rise has acted as an important variable," they said.

Regarding NVIDIA's competitor AMD, they said, "In terms of gross profit margin, NVIDIA is expected to see a slight decrease, but AMD (gross profit margin forecast this year 53% → 58% in 2027) is expected to steadily increase. Although AMD's stock return this year is absolutely lower than NVIDIA's, considering that the current deviation rate from the target price is similar to NVIDIA's at around 10%, the possibility of AMD gaining attention should also be kept in mind," they added.

Furthermore, they stated, "Meanwhile, market interest rates are maintaining a high level unlike before. It is an environment where it is not easy for gross profit margins to increase. When selecting companies within the industry, it is important not only that sales increase and estimates are revised upward but also to maintain a strategy of increasing the weighting of companies with the highest gross profit margins within the industry," they concluded.