AI boom could see Samsung sell out memory chips until 2027

Driven by the AI boom

What the AI boom means for Samsung memory chips

Surging demand for memory chips, fuelled by the AI market boom, could mean Samsung ends up selling out its entire output right through to 2027. This is the outlook shared by Jeff Kim, an analyst at KB Securities.

KB Securities forecast: profits rising, supply still tight

In his view, Samsung is set to enter a period of full-scale profit growth in the near term, as demand from AI chip makers continues to climb while the DRAM and NAND markets remain constrained by limited supply. He believes the memory shortage could persist for several more years.

Long-term contracts: buyers push, suppliers hold back

Against this backdrop, companies that rely on memory chips are increasingly trying to secure long-term agreements with Samsung and other suppliers. In some instances, that reportedly includes deals lasting up to five years - stretching as far as 2030 - to lock in guaranteed deliveries.

However, sources say memory manufacturers, including Samsung, are more cautious about signing lengthy contracts. Instead, they are leaning towards shorter agreements so they can revisit pricing more frequently as prices continue to rise.