Samsung Electro-Mechanics is showing strength, with attention focused on how NVIDIA's plan to expand package substrate production capacity will affect its future performance. In the securities industry, expectations are that the expansion of NVIDIA's supply chain and the industry-wide production capacity shortage will positively impact Samsung Electro-Mechanics' mid- to long-term growth.

As of the morning of the 22nd, Samsung Electro-Mechanics (009150) shares were trading at 1,204,000 won, up 36,000 won (3.08%) from the previous trading day.

◆ NVIDIA to Expand Substrate Production Capacity 2.5-Fold Over Three Years

In its analysis of Samsung Electro-Mechanics, iM Securities highlighted NVIDIA's substrate production capacity expansion plan as a key factor. NVIDIA announced a plan to increase its substrate production capacity 2.5-fold over the next three years, explicitly naming Samsung Electro-Mechanics as a supplier. In particular, it projected that by 2028, the volume allocated to NVIDIA will account for a significant share of Samsung Electro-Mechanics' total package substrate production capacity. The analysis suggests that NVIDIA's capacity expansion could also affect the scale of Samsung Electro-Mechanics' substrate supply.

◆ Package Substrate Supply Shortage in 2027... Possibility of Quarterly Price Increases

Supply and demand conditions in the package substrate market were also cited as a key variable. iM Securities expects new production capacity across the industry to be insufficient in 2027, deepening the supply shortage. It also forecast that if this supply-demand imbalance persists, package substrate selling prices could rise every quarter. Ultimately, not only the increase in supply volume from capacity expansion but also changes in selling prices are being cited as factors that will gauge Samsung Electro-Mechanics' future performance.

◆ Key Points to Watch: 'Actual Orders and Price Materialization'

However, the scale of NVIDIA's supply volume allocation and package substrate price increases may vary depending on future market conditions. Further confirmation is needed on how much actual supply expansion will translate into revenue growth. For Samsung Electro-Mechanics' future share price movements, the main points to watch include: whether NVIDIA's substrate capacity expansion plan leads to actual orders and increased supply volumes, and whether the projected package substrate supply shortage and price increases after 2027 materialize.

[This article is intended to provide information for investment reference purposes and does not recommend the purchase or sale of specific stocks. Content is subject to change depending on market conditions. Investment decisions and their consequences are the responsibility of the investor. AI assisted in part.]