Samsung Stock: Why Analysts Declare ’Samsung is Back’ as Nvidia Deal Looms

Tech giant Samsung Electronics is staging a comeback narrative that has Wall Street buzzing—and it's not just about smartphones anymore.

The Catalyst: A Looming Nvidia Partnership

Rumors of a major supply deal with AI-chip titan Nvidia have sent shockwaves through the semiconductor sector. Analysts point to Samsung's advanced memory and foundry capabilities as the perfect complement to Nvidia's next-generation AI processors. This isn't just another contract; it's a potential lifeline into the most lucrative tech trend of the decade.

Beyond the Hype: The Real Numbers Game

Forget the vague promises of 'synergy'—this is about cold, hard capacity and cutting-edge nodes. If Samsung locks down this deal, it directly challenges the dominance of other foundry players. The stock movement reflects a bet on execution, not just announcement. After all, in high-stakes silicon, promises are cheap; yield rates are priceless.

The Bottom Line: A Bet on Execution

The 'Samsung is Back' chorus hinges on one thing: delivering. Can its foundry division meet the brutal specifications and volumes Nvidia demands? Success cements its role as an AI infrastructure pillar. Failure? Just another cautionary tale in an industry that eats laggards for breakfast. As one fund manager quipped, 'This time, the turnaround story might actually be real—or it's just superb timing before the next earnings call.'

TLDR

• Samsung Electronics will buy back $1.73 billion worth of its own shares between January 8 and April 7 for employee and executive compensation
• Samsung stock has gained $350 billion in market value since the start of last year and rose 4% on Wednesday
• Analysts predict Samsung’s 2026 earnings will more than double to a record $60 billion due to memory chip price increases
• The company is close to securing a deal to supply high-bandwidth memory chips to Nvidia
• Samsung’s forward price-to-earnings ratio has dropped to 10 times from over 25 times in 2023

Samsung Electronics announced Wednesday it will purchase 2.5 trillion won worth of its own shares through open market transactions. The buyback runs from January 8 through April 7.

The shares will fund a performance-linked compensation program for employees and executives. Samsung introduced this scheme in October 2025.

The move comes as Samsung stock climbs higher. Shares jumped 4% on Wednesday after Nvidia CEO Jensen Huang discussed opportunities in AI data storage markets.

Samsung reports preliminary earnings Thursday. Analysts expect quarterly profits to more than double from last year.

The stock has added $350 billion in market value since early last year. This marks a turnaround after three years of lagging behind rival SK Hynix.

Catching Up in the AI Race

Samsung is reportedly nearing a deal to supply its latest high-bandwidth memory chips to Nvidia. This WOULD be a major win for the company.

HBM chips power AI applications. SK Hynix gained market share by securing Nvidia contracts earlier. Samsung has been working to catch up.

“Samsung was at a discount because it was left behind,” said Kang DaeKwun, chief investment officer at Life Asset Management. His fund has maximized its Samsung holdings heading into 2026.

The memory chip market is seeing tight supply. Demand for HBM has reduced production capacity for conventional memory products. Samsung dominates this segment.

Prices for legacy DRAM chips used in servers, PCs, and smartphones have climbed. Citigroup analyst Peter Lee anticipates “a severe supply shortage in commodity memory in 2026.”

Lee raised his price target for Samsung to 200,000 won. This is the highest on the street.

Record Profits Expected

Analysts polled by Bloomberg predict Samsung will earn about $60 billion in 2026. This would be a record high. The figure matches projections for Taiwan Semiconductor Manufacturing Co.

Samsung’s market cap sits at $560 billion. TSMC is valued at more than double that amount.

Profit estimates for Samsung’s next 12 months have increased 115% since September. This beats the 88% rise for SK Hynix and 16% for TSMC.

The company’s forward price-to-earnings ratio now stands at 10 times. It peaked above 25 times in 2023.

“The current memory upcycle looks stronger than ones in the past,” said Vey Sern Ling, managing director at Union Bancaire Privee.

Samsung showcased AI-enabled TVs and other products at CES in Las Vegas this week. The company also hopes to improve its foundry business, though it trails far behind TSMC in that segment.

Some analysts caution that expectations may be running high. Jung In Yun at Fibonacci Asset Management Global noted that while Samsung could outperform if it catches up in HBM, “expectations are already high, maybe too optimistic.”

The buyback program is part of Samsung’s October 2025 compensation initiative. Shares will be acquired through purchases on the stock market over the three-month period.