The memory market is showing few signs of immediate relief, with projections indicating continued price escalation for PC gamers and consumers. According to a report from Korean investment firm KB Securities, a significant 80% of Samsung's memory output designated for data centers in 2027 has already been committed through long-term agreements. This leaves only 20% of that supply available for other market segments.
Further tightening supply, 70% of Samsung's commodity memory production, including DRAM and NAND, is reportedly covered by five-year contracts. The company's entire output of High Bandwidth Memory (HBM), a critical component for graphics cards and data center accelerators, is secured by yearly agreements. KB Securities anticipates this specialized memory will see a year-over-year price increase of 100-150%. The impact is expected to ripple into the consumer market, with forecasts suggesting a double-digit quarter-over-quarter price hike for RAM following the new year.
While some industry figures have expressed optimism that memory shortages may not extend to 2030, the current supply constraints, largely driven by AI demand, suggest a challenging period ahead. Analysts point to AI as the primary driver for current high memory and storage prices, with little immediate indication of price drops.
Despite these market pressures, KB Securities maintains a positive outlook for Samsung's financial performance. The firm predicts substantial earnings growth for the company, projecting a 57% year-over-year increase in operating profit by 2027, potentially reaching 555 trillion Korean won (approximately $4 billion USD). This optimistic forecast comes even after a recent sell-off in AI and semiconductor stocks, which saw Samsung's share price decline by 19%. KB Securities attributes this volatility to broader market sentiment and macroeconomic uncertainties rather than fundamental issues with Samsung's earnings prospects, citing reserved output and rising prices as key factors assuring future growth.