Samsung Electro-Mechanics reclaimed the No. 4 spot by market capitalization on the KOSPI, lifted by a surge in its share price. The company's shares have climbed nearly sixfold, from around 200,000 won early in the year to recently around 1.9 million won. Analysts say the company could benefit from expanding global AI investment, as it produces multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) data centers.
According to the Korea Exchange, Samsung Electro-Mechanics closed at 1.97 million won Thursday, up 18.38% from the previous trading day. The stock rose as high as 1.972 million won during the session. With the surge, its market capitalization stood at 147.1466 trillion won at the close, overtaking Hyundai Motor (130.8402 trillion won) to move up to No. 4 on the KOSPI. The day before, Samsung Electro-Mechanics had ranked No. 5 by KOSPI market capitalization, but the ranking changed in a single day. The company has recently been competing with Hyundai Motor for the No. 4 spot in KOSPI market capitalization.
Brokerages have been raising their price targets for Samsung Electro-Mechanics one after another. iM Securities published a report Thursday, lifting its target price for the company to 2.3 million won from the previous 1.8 million won. It maintained its "buy" investment opinion. The report said, "Samsung Electro-Mechanics is a representative AI component stock that can benefit simultaneously from its MLCC and flip-chip ball grid array (FC-BGA) businesses," adding, "Through additional price increases and other measures, the likelihood of notable upward revisions to earnings estimates going forward remains high."
Meritz Securities also recently raised its target price for Samsung Electro-Mechanics to 2.1 million won, classifying its core product, MLCCs, as a "strategic asset" of the AI era. iM Securities estimated Samsung Electro-Mechanics' operating profit at 3.3 trillion won in 2027 and 4.3 trillion won in 2028, raising the figures by 5% and 6%, respectively, from its previous estimates.
