Business · Companies · 2 hrs ago
KB Securities Sees Samsung Memory Profit Growth Despite 19% Share Drop
Samsung Electronics shares have fallen 19% this month, amid concerns about continued AI investment and rising interest rates.
KB Securities says the drop reflects economic uncertainty and weaker investor confidence, rather than damage to Samsung’s ability to earn money.
The firm estimates long-term contracts cover about 80% of Samsung’s planned memory output for next year.
Contracts cover 70% of planned production of standard DRAM and NAND chips, while all planned annual production of HBM memory has been contracted.
KB expects HBM4 prices to lift memory prices, with DRAM prices forecast to rise by double digits in the first quarter compared with the previous quarter.
The firm projects Samsung’s operating profit will be 367 trillion won this year and 555 trillion won next year.
KB says the outlook for next year’s profit growth remains intact, though it expects short-term share-price swings linked to economic conditions.
KB Securities estimates that Samsung has secured long-term supply contracts for about 80% of its planned memory production for 2027.
The brokerage says rising prices for high-bandwidth memory and conventional DRAM should support Samsung’s profit growth next year.
It forecasts Samsung operating profit of 367 trillion won in 2026 and 555 trillion won in 2027.
Samsung shares fell 19% in October, which KB Securities attributed to macroeconomic uncertainty and weaker investor sentiment rather than damage to the company’s underlying earnings power.
- Who
- Samsung Electronics and KB Securities.
- What
- KB Securities forecasts strong profit growth for Samsung, citing long-term memory supply contracts and rising prices.
- When
- The reports were published on October 19 and 20, 2026. The profit growth forecast is for 2027.
- Where
- Not stated.
- Why
- KB Securities says contracted memory volumes and rising HBM and DRAM prices support the forecast.
This story does not have two clearly opposing sides.
Samsung Electronics shares fell 19% amid concerns about the durability of AI investment and rising interest rates.
Hankyung reported KB Securities’ forecast that Samsung would earn 555 trillion won in operating profit in 2027.
Maeil Business reported that KB Securities estimated Samsung had secured long-term contracts for about 80% of its planned 2027 memory production.
- 2027 memory production
- About 80% estimated to be covered by long-term supply contracts
- Conventional memory
- 70% of planned 2027 DRAM and NAND production reportedly covered by five-year contracts
- HBM supply
- Annual HBM production reportedly fully contracted
- 2027 operating profit forecast
- 555 trillion won
- October share-price decline
- 19%
What people are saying
The increase in earnings next year is virtually certain.
The recent share price correction appears to be due to valuation adjustments amid macroeconomic uncertainty and weakened investor sentiment, rather than damage to Samsung Electronics’ underlying earnings power.
The possibility that the direction of next year’s earnings growth will be undermined is limited.