MORGAN STANLEY MAINTAINS THE SK HERCULES AND TRISTAR ELECTRONIC INCREASE RATING

MORGAN STANLEY MAINTAINS SK HERCULES AND TRISTAR ELECTRONIC INCREASE RATINGS AT A TARGET PRICE OF 2.6 MILLION WON AND 381,000 WON RESPECTIVELY. REPORTING USING BENCHMARK SHARE PRICES, THE TWO TARGET PRICES CORRESPOND TO A POTENTIAL INCREASE OF APPROXIMATELY 74 PER CENT AND 65 PER CENT, BUT DO NOT REPRESENT AN INCREASE IN STOCK PRICES. THE REPORT INCREASED CLOUD CAPITAL EXPENDITURE FROM 14 PER CENT TO 29 PER CENT IN 2027 OVER TIME, AND AI COMPUTING REQUIREMENTS REMAIN AN IMPORTANT STRUCTURAL UNDERPINNING OF THE STORAGE CYCLE. DRAM, NAND CONTRACT PRICES CONTINUE TO RISE, BUT RING-TO-SEAT INCREASES HAVE FALLEN FROM THEIR HIGHS; MORGAN STANLEY EXPECTS THE STORAGE INDUSTRY TO ENTER LATER IN THE FOURTH QUARTER OF 2026。