Memory Suppliers’ Earnings: Maintaining Favorable Price Outlook for 2024; AI Server Is a Bright Spot

We have revised our earnings forecasts for two South Korean memory suppliers and raise the fair value estimate for Samsung Electronics to KRW 80,000 per share from KRW 78,000 and to $1,560 per global depositary receipt from $1,470. We've raised the fair value estimate for SK Hynix to KRW 140,000 from KRW 120,000. The reason for the larger increase in SK Hynix’s fair value is that the contribution of increasing investment in artificial intelligence servers is more significant. Excluding the AI server investment, memory supply and demand are largely in line with our expectations, and we maintain our view that memory prices will bottom out by the end of this year and continue to rise through 2024.