Samsung's entire memory chip production is expected to be sold out before 2027: analyst

LootboxPhobia · 2026-03-12T17:39:22+00:00

KB Securities analyst Jeff Kim predicts that Samsung Electronics' memory chip supply will sell out before 2027. Due to surging artificial intelligence demand and supply constraints, the DRAM and NAND markets will remain tight, with memory prices expected to rise. Operating profit is projected to increase significantly in 2026.

LootboxPhobia

2026-03-12 17:39:22

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Investing.com - According to KB Securities analyst Jeff Kim, Samsung Electronics is entering a period of full profit growth, and all memory chip supplies may be sold out before 2027.

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In a report on Thursday, Kim stated that the surge in AI demand and limited industry supply growth will keep the DRAM and NAND markets tight in the coming years.

Kim wrote, “Samsung Electronics’ entire memory production before 2027 is expected to be sold out,” and added that major tech companies are “increasingly considering signing five-year (until 2030) supplier agreements” to secure supply.

The tightening market has prompted the company to raise Samsung’s target price by 33% to 320,000 won, reflecting significantly higher profit expectations.

Kim noted that the operating profit forecast for 2026 has been raised by 30% to 220 trillion won, and the 2027 estimate has been increased by 57% to 301 trillion won.

Memory prices are central to the bullish outlook. KB Securities currently expects DRAM prices to rise 148% year-over-year in 2026, and NAND to increase by 111%.

The report states, “As demand surges sharply, supply growth may remain constrained before 2027, and DRAM/NAND prices are expected to continue rising.”

The near-term outlook is also stronger. Kim predicts “an operating profit of 40 trillion won in the first quarter of 2026 (a fivefold increase year-over-year, and double quarter-over-quarter),” driven by soaring memory profit margins, with the memory segment alone expected to generate 38 trillion won in operating profit, surpassing its total revenue for all of 2025 in just one quarter.

As AI models shift from text-based systems to multimodal architectures integrating vision, language, and behavior, KB Securities expects demand from edge AI devices such as robots and autonomous vehicles to strengthen “structural growth in memory chip demand” over the decade.

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