“Korean securities firms warn: Samsung and SK Hynix are running out of memory inventory for 10 days. The surge in AI demand has exacerbated the supply shortage.”
According to analysis by Korean securities firm KB Securities, driven by the accelerated expansion of AI infrastructure investment in global super-large data centers, Samsung Electronics and SK Hynix’ memory inventories have dropped to less than 10 days’ supply. With the widespread use of HBM4 technology, wafer consumption is significantly higher than that of traditional DRAM. Coupled with the expected increase in AI investment next year to $1.3 trillion (with storage semiconductors accounting for 57% of this total), the memory chip market is facing a severe supply shortage. Experts predict that the supply gap in the DRAM and NAND markets will exceed 10% by 2027. Although Samsung Electronics’ stock price has fallen by nearly 28% and SK Hynix’s by nearly 40%, analysts believe that the fundamentals of both companies are undervalued, and their profits are expected to reach record highs for three consecutive years.
Korean brokerage KB Securities warned that Samsung Electronics and SK Hynix’s inventory has dropped to less than 10 days’ supply. The institution reported on Monday that as investment in artificial intelligence infrastructure expands at an unprecedented pace, the memory chip market is facing a severe supply shortage. Factors exacerbating this include the transition to HBM4, which requires about three times as many wafers as traditional DRAM, resulting in reduced available capacity next year. It is expected that next year’s demand for DRAM and NAND will exceed supply by more than 10 percentage points. Global hyperscalers of super-large data centers have raised their expectations for next year’s investment in artificial intelligence infrastructure to $1.3 trillion, with memory semiconductors likely accounting for 57% of this investment. Although stock prices have dropped significantly due to market concerns, Samsung Electronics has fallen nearly 28%, and SK Hynix by nearly 40%. However, analysts believe its fundamentals are undervalued, and profits are expected to reach record levels for three consecutive years.
According to analysis by Korean securities firm KB Securities, Samsung Electronics and SK Hynix have insufficient memory inventory for more than 10 days, making it difficult to meet sudden demand. The institution predicts that global super-large data center companies will invest $1.3 trillion in AI infrastructure by 2027, a 60% increase from previous years; among these, the share of storage semiconductors will rise from 14% in 2025 to 57% in 2027, quadrupling in just two years. With the increased production of HBM4, its wafer consumption will be significantly higher than that of general DRAM and HBM3E, leading to pressure on overall supply in the memory market by capacity. The institution believes that the supply gap in the DRAM and NAND markets will exceed 10% by 2027, and the shortage of storage semiconductors will worsen further.