Overview
Published on 04‑08‑2026 at 11:10 pm by Garrett Cook (Reuters), the research note states that Goldman Sachs reiterated its buy rating on Samsung Electronics Co. Ltd. and SK Hynix Inc. after both shares experienced sharp corrections over the preceding month.
Share‑price performance
Samsung Electronics fell 23 % and SK Hynix declined 35 % during the last 30 days. The price drops were attributed to a combination of weakening memory‑pricing expectations, lack of disclosed long‑term agreement details, elevated inventory levels at module makers, increasing DRAM supply from China, the absence of shareholder‑return announcements, and a second‑quarter operating‑profit miss by SK Hynix.
Valuation metrics
Following the correction, Samsung Electronics is trading at a forward price‑to‑earnings multiple of 3.6× for FY 2027 and a price‑to‑book multiple of 1.4×. SK Hynix is valued at 3.5× forward PE and 1.6× price‑to‑book. Goldman Sachs interpreted these low multiples as indicating that the market doubts the sustainability of solid earnings for the two memory manufacturers.
Analyst coverage
The note addressed eight specific investor questions concerning the memory industry, including:
- High‑bandwidth memory pricing outlook
- Prospects for long‑term supply agreements
- Current inventory levels at module makers
- Expected DRAM production growth in China
- Implications of American Depositary Receipts (ADRs)
Goldman also acknowledged that factors beyond pure industry and company fundamentals may have contributed to the recent share‑price declines.
Conclusion
Goldman Sachs’ reaffirmation of a buy stance suggests confidence that the current valuation discounts are temporary and that earnings fundamentals remain robust, despite the recent market‑wide pull‑back in memory‑chip stocks.