[Click eStock] "AI Expansion to Drive GPU Demand for Samsung SDS... Target Price Raised"

Korea Investment & Securities Raises Target Price for Samsung SDS to 290,000 Won

On July 13, Korea Investment & Securities raised its target price for Samsung SDS from 200,000 won to 290,000 won, maintaining a 'Buy' rating. The brokerage cited anticipated growth in demand for graphic processing units (GPUs) driven by the expansion of artificial intelligence (AI).

Jung Hoyoon, a researcher at Korea Investment & Securities, stated, "Samsung SDS is a company well positioned to benefit from increased GPU demand within the Samsung Group, as well as from rising GPU demand from the government and public institutions."

This expectation is supported by recent evidence that domestic companies are seeing greater demand for AI, particularly in physical AI applications, and that government-led demand for sovereign AI is also on the rise. For example, investment in physical AI such as robotics is accelerating, led by Hyundai Motor Group, while Samsung Group is also expected to ramp up investments in factory automation, including dark factories. Korea Investment & Securities predicts that such investment expansion will directly lead to increased demand for GPUs at Samsung SDS.

In addition, Samsung SDS has been selected as the operator for the government's National AI Computing Center project and is currently building a 40MW data center in Haenam. Jung commented, "With the government expanding research and development at the national level in AI, the growing need for sovereign AI is expected to be another key driver of GPU demand for Samsung SDS."

Korea Investment & Securities has calculated Samsung SDS's appropriate corporate value at 22.757 trillion won. The systems integration (SI) division is valued at 3.718 trillion won, the cloud division at 18.554 trillion won, and the logistics division at 484 billion won. Jung emphasized, "While there may not be a rapid impact on earnings in the short term, we expect strong revenue growth after 2028 as new data center construction is completed," adding, "Given the evolving market environment surrounding domestic data centers, we are proactively raising our valuation to reflect these changes."

This content was produced with the assistance of AI translation services.