Citi "Forecasts Samsung Electronics' Operating Profit at 155 Trillion Won This Year... Target Price Raised to 200,000 Won"

Worsening AI Memory Supply Shortage... DRAM Prices Expected to Surge 88%, Evaluated to Have Secured Pricing Power for Server Memory Such as 64GB DDR5

Global investment bank Citi has significantly raised its 2026 operating profit forecast for Samsung Electronics by 35% from the previous 115 trillion won to 155 trillion won. It analyzed that a structural supply shortage of memory semiconductors caused by the proliferation of artificial intelligence (AI) agents and explosive data demand will drive a surge in prices. Accordingly, it also raised its target stock price from the previous 170,000 won to 200,000 won.

Citi Research revealed this in a report published on the 2nd, maintaining a 'Buy' investment rating on Samsung Electronics. According to the report, Samsung Electronics' expected operating profit of 155 trillion won for 2026 represents a whopping 253% increase year-on-year. This suggests that the memory semiconductor market has moved beyond a simple recovery phase and entered an unprecedented boom period.

The steep rise in memory average selling prices (ASP) was cited as the core driver for the earnings improvement. Citi revised its 2026 annual DRAM price increase forecast upward from the previous 53% to 88%, and NAND from 44% to 74%. In particular, it predicted that the price increase for server DRAM and enterprise SSDs (eSSD) will significantly exceed market expectations.

Specifically, the price of the flagship 64GB DDR5 RDIMM module is forecast to rise by 38% quarter-on-quarter in the first quarter of this year alone, reaching $620. The report analyzed, "The increase in data for AI training and inference is causing a severe supply shortage of conventional memory," adding, "The upward price trend of not only 64GB products but also high-capacity products like 96GB and 128GB will be prominent."

Financial soundness indicators and valuation attractiveness were also highlighted. Citi estimated Samsung Electronics' expected price-to-earnings (P/E) ratio for 2026 at 7.3 times, diagnosing that the current stock price (119,900 won based on the closing price on December 30, 2025) is in an extremely undervalued range. The expected return on equity (ROE) is also forecast to maintain high profitability at 23.7%.

Citi Research evaluated, "AI data demand has completely changed the landscape of pricing power in the memory market." There is confidence that Samsung Electronics will be the biggest beneficiary of an unprecedented earnings cycle in 2026 thanks to the favorable pricing environment. Market attention is focused on whether Samsung Electronics can ride the semiconductor market's 'super cycle' once again and reach the '200,000 won Electronics' milestone.