Analyst Note on Samsung Memory Stock
KB Securities analyst Jeff Kim issued a note stating that Samsung Electronics’ memory‑chip shares have declined roughly 30% from their recent peak, a move he attributes to weakened investor sentiment rather than any deterioration in the company’s underlying fundamentals.
Despite the price correction, the firm maintains that the long‑term growth outlook for the AI infrastructure sector remains unchanged, and the fundamental issue of a chip shortage is expected to intensify. KB Securities projects the 2027 chip shortage to be the worst in the semiconductor industry’s 70‑year history, with the shortage likely to persist through at least 2028.
The analyst links the severity of the shortage to aggressive capital expenditure focused on high‑bandwidth memory (HBM) chips, which will limit the expansion of commodity DRAM output capacity. Consequently, the share of HBM in global DRAM wafer production is forecast to rise from 15% in 2026 to 34% in 2027, curbing growth in commodity memory supply.
On the demand side, Kim highlights accelerating AI data‑center construction in the United States. The Federal Energy Regulatory Commission has fast‑tracked grid‑connection procedures, reducing lead times from five years to one‑to‑two years. This regulatory acceleration is expected to double the pace of AI data‑center deployment, exemplified by Meta’s plan to add 14 GW of AI computing infrastructure by 2027.
Overall, KB Securities views the recent sell‑off as an over‑reaction and suggests that the current valuation presents a long‑term buying opportunity for investors seeking exposure to the memory‑chip market and the broader AI infrastructure growth narrative.