Goldman Sachs raises target prices for Hynix, Samsung Electronics, and Kaixia across the board: valuation framework shifts from price to book ratio to price to earnings ratio BlockBeats News: On June 1st, Goldman Sachs released a global in-depth report on the semiconductor storage industry, officially raising the target prices of SK Hynix, Samsung Electronics, and Kaixia significantly across the board. Among them, the target price of SK Hynix has risen to the range of 3.3 million to 3.5 million Korean won (with an implied increase of about 53%), the target price of Samsung Electronics has been raised to 480000 Korean won (with an implied increase of about 60%), the rating of Kaixia has been upgraded to "buy", and the 12-month target price is set at 93000 yen. The core logic of this upward adjustment is the historic shift in the valuation framework of the storage industry - Goldman Sachs believes that AI driven demand sustainability, supply constraints, and the popularity of long-term supply agreements (LTAs) are driving the storage industry's transformation from a high cyclical commodity track to an AI infrastructure track with predictable profits. The industry benchmark has officially switched from price to book ratio (P/B) to price to earnings ratio (P/E), currently anchored at around 9 times P/E. The report also significantly revised up the supply and demand gap forecast, predicting that the supply shortage of DRAM, NAND, and HBM categories will continue until 2028, with HBM being the most deadly, with a 54% increase in market size to $116 billion in 2027. Previously, Morgan Stanley and JPMorgan Chase had pointed out that the large-scale implementation of LTA is transforming the storage giant's strong cycle business into a technology infrastructure with stable cash flow attributes. Currently, there is a 50% -80% valuation discount between the forward P/E of only 7.3 times and TSMC, facing a historic narrowing opportunity. However, Goldman Sachs also warns that the only ironclad evidence that can truly support the new valuation framework is the real cash advance payments and legally locked deferred income obligations on the balance sheet, otherwise the narrative that crosses the cycle may still repeat the mistake of the 2017 forward agreement becoming worthless paper.