Morgan Stanley Significantly Lowers Target Prices for Samsung Electronics and SK Hynix. According to Jinse Finance, in its report "Memory Chips – Key Issues Post-US Midterm Elections" released on November 9th, Morgan Stanley significantly lowered its target prices for SK Hynix and Samsung Electronics. The target price for SK Hynix was lowered from 2.6 million won to 1.6 million won, a decrease of 38%; the target price for Samsung Electronics was lowered from 381,000 won to 309,000 won, a decrease of 19%. The bank believes that the expansion of investment in artificial intelligence (AI) will continue to drive the memory chip industry's prosperity, but starting from the end of 2027, with new production facilities gradually coming online, the current high profitability level may be difficult to sustain in the long term. However, the bank remains optimistic about short-term performance. Morgan Stanley raised its operating profit forecast for Samsung Electronics next year by 9% to approximately 688 trillion won, and its operating profit forecast for SK Hynix next year by 13% to approximately 468 trillion won. The bank also raised its 2028 operating profit forecasts for the two companies by 10% and 1%, respectively. The report maintained its "overweight" rating on Samsung Electronics and SK Hynix. However, Morgan Stanley lowered its target price, citing its expectation that profit margins in the memory chip industry will return to historical averages after 2029. Stock prices often fluctuate before changes in corporate fundamentals, and the market will reflect the risk of downward revisions in earnings expectations in advance.