Morgan Stanley analyst Shawn Kim recommends buying Samsung Electronics shares after a 20% sell-off, calling it a buying opportunity ahead of a major shift in AI memory architecture. The stock has underperformed the KOSPI index by 3 percentage points this week, creating what Kim describes as an attractive entry point for investors.

The memory market for AI inference is evolving toward a hybrid model, with SRAM gaining traction for latency-sensitive workloads while HBM remains dominant for throughput. Morgan Stanley expects Nvidia to unveil a new inference chip at its upcoming GPU Technology Conference, featuring a Language Processing Unit architecture built around large amounts of on-chip SRAM.

Despite uncertainty about how the AI memory market will fragment, Morgan Stanley maintains Samsung Electronics as its top pick, citing HBM4 qualification, SRAM capabilities, foundry flexibility and the broader commodity upcycle. The firm also reiterated its positive view on SK hynix. Kim noted that historically, such corrections have offered good buying opportunities, with earnings expectations still having significant room for recovery.