Samsung says memory demand will be much more than supply in 2027
Memory sales of Samsung increased 427% in one year, and profit for the quarter was more than 100 trillion South Korean won.
On Thursday, 29 October, Samsung said that memory demand will be much more than supply in 2027. It made the statement with the results of its third quarter. Samsung says that companies will give more cash than before to AI (artificial intelligence) infrastructure. The memory unit of Samsung made record revenue and profit in the quarter.
What Samsung said
Jaejune Kim, a memory executive at Samsung, said that demand growth was more than production. Samsung tried to make more. It will keep its supply for AI uses. It also wants contracts of many years.
The numbers
- Memory sales increased 16% from the quarter before.
- Total revenue was 195.3 trillion won (about $146.5 billion).
- Operating profit was 107.4 trillion won (about $80.5 billion), 20% more.
Samsung says memory prices were more in all uses.
What is not known
Analysts want to know if memory profit margins are at their top, and if AI spending will last. On Friday, 30 October, the Nasdaq stock market decreased 3% because traders are not sure that AI investment gives a good result. Samsung gave no price numbers for 2027.
Insight: Samsung wants buyers locked in while investors question AI spending
Samsung wants contracts of many years. In October, the value of the Nasdaq decreased by more than $1.2 trillion because traders are not sure about AI returns. Omdia said PC shipments decreased more than 20% in the third quarter because of memory prices. This reads as a seller that uses a shortage to move the risk of AI demand to buyers. If you get hardware, look at the length of each contract.
Sources
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