Key Points
(Bloomberg) -- After lagging the global rally in semiconductor stocks over the past year, Samsung Electronics Co. is primed for a spot at the front of the pack on newfound optimism over its artificial intelligence strategy..
Investors are starting to realize that AI will boost demand for NAND where Samsung has the largest market share as well as the high-bandwidth memory dominated by rival SK Hynix Inc..
Analysts have been raising price targets for Samsung to factor in AI benefits plus signs of a broader rebound in memory demand and prices after a long slump..
While AI titan Nvidia Corp. has tripled in the past 12 months and its key HBM supplier SK Hynix has more than doubled, Samsung is seen having greater upside after a mere 32% gain..
Weve started reducing our holding in SK Hynix and allocating it to other parts of the memory chip value chain that havent benefited as much, like Samsung Electronics, where we think that upside hasnt yet been realized," said Christine Phillpotts, portfolio manager at Ariel Investments LLC..
