Meritz Securities: Market Significantly Misjudging Samsung and SK Hynix; DRAM Demand Shortage to Deepen

According to Meritz Securities analyst Kim Sunwoo on July 17, the market is significantly misjudging the fundamentals of Samsung Electronics and SK Hynix. Long-term supply agreements with major tech companies involving price reductions are strategic investments to secure generative AI and data center demand, not pure price concessions, Kim said.

Kim forecasts DRAM demand fulfillment at only 75%-80% in H2 2026, potentially dropping to around 60% in 2027, with real end-user demand satisfaction at approximately 70%. Samsung's share buybacks and SK Hynix's potential special dividends could help ease market concerns. Both companies are currently severely undervalued and over-adjusted, Kim concluded.