Samsung Electronics has reportedly secured long-term supply agreements covering about 80 percent of its planned memory chip production for 2027, strengthening its earnings outlook despite growing concerns over the sustainability of the artificial intelligence investment boom, according to KB Securities.
"Samsung is estimated to have already secured approximately 80 percent of its planned memory production for 2027 through long-term supply agreements," said Kim Dong-won, head of research at KB Securities, in a report released Tuesday.
The estimate includes five-year contracts with global technology companies covering 70 percent of Samsung's planned conventional DRAM and NAND flash output, along with supply commitments for its entire projected high-bandwidth memory production.
"Competition among hyperscalers to secure supplies continues even for the remaining 20 percent of uncontracted memory production," Kim said.
KB Securities forecast Samsung's operating profit would jump 51 percent to 555 trillion won ($417.6 billion) in 2027 from an estimated 367 trillion won this year.
The brokerage expects average selling prices for Samsung's HBM chips to surge 100 to 150 percent next year, driven by premium HBM4 products. HBM4's share of the company's HBM revenue is projected to double to 80 percent.
The bullish outlook follows Samsung's preliminary third-quarter results, released Oct. 8, which showed operating profit soaring nearly ninefold from a year earlier to 107.4 trillion won on revenue of 195 trillion won.
Samsung's estimated contract coverage reflects a broader shift among memory chipmakers toward multiyear supply agreements as AI infrastructure investment tightens global memory supplies.
Micron CEO Sanjay Mehrotra said during the US chipmaker's Sept. 30 earnings call that more than 75 percent of its planned 2027 output had already been committed.
Mehrotra also projected tight supply conditions through 2028, with customers already negotiating future allocations.
SK hynix, meanwhile, said in July that it had finalized long-term agreements with around 10 major customers, citing simultaneous growth in demand for AI memory and conventional memory.
Despite recent weakness in Samsung shares, Kim maintained that the company's earnings outlook remains intact, attributing the stock's decline primarily to macroeconomic uncertainty rather than deteriorating fundamentals.
"Short-term stock volatility may increase due to macroeconomic factors, but the likelihood of a reversal in next year's earnings growth remains limited," he said.
Samsung is scheduled to release its detailed third-quarter earnings on Oct. 29.
mjh@heraldcorp.com