Morgan Stanley Maintains Overweight Ratings on SK Hynix and Samsung Electronics

Morgan Stanley maintains an overweight rating on SK Hynix and Samsung Electronics, with target prices set at 2.6 million KRW and 381,000 KRW respectively. Based on the benchmark stock price used in the report, the two target prices correspond to potential upside spaces of approximately 74% and 65%, but this does not mean that stock prices will necessarily rise. The report raises the forecast for year-on-year growth rate of cloud capital expenditure in 2027 from 14% to 29%, as AI computing power demand continues to be an important structural support for the memory cycle. DRAM and NAND contract prices continue to rise, but the month-on-month growth rate has fallen from its peak; Morgan Stanley expects the memory industry to enter the late stage of the cycle in the fourth quarter of 2026.