On Monday, Morgan Stanley (NYSE:MS) reiterated its Overweight rating on Samsung Electronics Co Ltd . (KS:005930:KS) (OTC: SSNLF (OTC:SSNLF)), maintaining a price target of KRW95,000.00. The firm's analysis suggests that the upcoming financial results from NVIDIA Corporation (NASDAQ:NVDA), which are set to be released on February 21, will be a significant indicator for the strength of AI server supply chain shipments.
The focus is on NVIDIA's April revenue and its guidance for the calendar year 2024. It is anticipated that NVIDIA's April revenue could reach $22.8B, as estimated by the analyst covering the company, compared to a market consensus of around $22B and more optimistic expectations from the buy-side of about $24B.
Morgan Stanley's forecast implies that a positive guidance from NVIDIA could act as a catalyst for Samsung Electronics' stock price. This is due to Samsung's dominant position in the supply chain for NVIDIA's High Bandwidth (NASDAQ:BAND) Memory (HBM), which is a critical component in AI servers.
The connection between NVIDIA's performance and Samsung's prospects emphasizes the interlinked nature of the tech industry, where suppliers and manufacturers often share the fortunes of their major clients. The strength of Samsung's position in the HBM supply chain is particularly crucial, given the growing importance of AI technologies and the servers that power them.
Investors and market watchers are now likely to pay close attention to NVIDIA's earnings call scheduled for February 21, as its outcomes could have direct implications for Samsung's share performance. The anticipation of NVIDIA's revenue and guidance for the year ahead has set the stage for potential movements in Samsung's stock price.
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