Goldman Sachs Sticks with Buy Rating on Samsung, SK Hynix Amid Share Price Declines

Goldman Sachs has maintained its buy rating on Samsung Electronics and SK Hynix, despite recent share price declines of 23% and 35%, respectively.

The investment bank attributed the decline to concerns about weakening memory pricing expectations, lack of long-term agreement details, higher inventory at module makers, increasing China supply, absence of shareholder return announcements, and SK Hynix's second quarter operating profit miss.

Goldman Sachs noted that current valuations suggest the market does not believe in the sustainability of solid earnings for these companies. The investment bank addressed eight key investor questions on the memory industry and companies in its report, covering topics including high bandwidth memory pricing, long-term agreements, inventory levels, China DRAM production, and American depositary receipts.