By Kwanwoo Jun
Samsung Electro-Mechanics shares continued to power higher for a third session on expectations of strong demand for its multilayer ceramic capacitors used in artificial-intelligence data servers.
The South Korean electronics-component maker's stock on Monday rose 13% to close at 426,500 won, equivalent to $295.12, outperforming the benchmark Kospi's 0.6% gain.
The stock surged 5.3% and 16%, respectively, in the previous two sessions.
Demand for AI data servers is accelerating and MLCC prices are poised to follow semiconductor prices and rise sharply, KB Securities' C.M. Lee and Yeonsoo Kim said in a research note.
Samsung, which dominates the global MLCC market alongside Japan's Murata Manufacturing, has room to expand its operating-profit margin from 11.7% in 2025 toward its Japanese rival's estimated 30%, the KB analysts said.
KB Securities raised its stock target price for Samsung Electro-Mechanics by 24% to 460,000 won, and maintained its buy rating.
Brayden Park and Jaeseong Lee of Korea Investment & Securities said that Murata's chief executive recently said he was weighing price increases for MLCCs used in AI data servers due to tight supply conditions, which will likely lead to higher prices for Samsung's MLCCs.
Korea Investment & Securities raised its operating-profit forecast for Samsung to 1.374 trillion won in 2026, up 51% from a year earlier, they said.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
02-23-26 0312ET
