KB Securities analyst Jeff Kim wrote in a note Thursday that Samsung Electronics is poised for a period of robust earnings expansion as memory markets tighten. Kim said "SEC's entire memory output through 2027 is expected to sell out," and cited soaring artificial intelligence demand alongside limited growth in industry supply as the drivers that will keep DRAM and NAND markets constrained for multiple years.
Those dynamics prompted KB Securities to lift its valuation of Samsung, increasing its price target by 33 percent to KRW320,000. The upgrade reflects substantially higher earnings expectations, with the firm raising its 2026 operating profit forecast by 30 percent to KRW220 trillion and its 2027 estimate by 57 percent to KRW301 trillion.
Memory pricing lies at the center of KB Securities' bullish view. The research note sets out a forecast for DRAM prices to rise 148 percent year over year in 2026 while expecting NAND prices to climb 111 percent. The report states that "DRAM/NAND prices are expected to maintain an upward trajectory as supply growth is likely to remain constrained through 2027 amid sharp demand increases."
Kim also highlighted near-term strength, forecasting a first-quarter 2026 operating profit of KRW40 trillion, a figure described as "1Q26E OP at KRW40tn (+5x YoY, +2x QoQ)." Much of that gain is projected to come from the memory division, which KB Securities expects to generate KRW38 trillion in operating profit in that single quarter - a sum the firm notes would exceed Samsung's total operating profit for all of 2025.
The research note connects the demand outlook to evolving AI workloads. As models move beyond text-only systems toward multimodal architectures that integrate vision, language, and behavioral inputs, KB Securities expects reinforced demand for memory from edge-AI devices such as robots and autonomous vehicles. The firm frames this as supporting "structural growth of demand for memory chips" into the latter part of the decade.
Context and implications
The note by KB Securities ties substantial upward revisions in Samsung's earnings and stock valuation directly to a combination of sharply rising AI-driven demand and constrained supply expansion in DRAM and NAND. The firm projects large, near-term margin gains for Samsung's memory business and sustained price strength through at least 2027.
Key points
- KB Securities projects that Samsung's complete memory-chip output through 2027 will be sold, driven by strong AI-related demand and limited supply growth.
- The broker increased its Samsung price target to KRW320,000 and raised operating profit forecasts to KRW220 trillion for 2026 and KRW301 trillion for 2027.
- DRAM and NAND prices are forecast to surge in 2026 - DRAM by 148 percent year over year and NAND by 111 percent - underpinning much of the earnings upside.
Risks and uncertainties
- The outlook depends on continued, strong demand from AI and edge-AI devices; if that demand trajectory weakens, the projected pricing and profit gains may not materialize. This affects semiconductor and enterprise technology sectors.
- KB Securities' forecasts assume constrained industry supply growth through 2027; an unexpected acceleration of supply expansion could relieve market tightness and alter price trajectories, with implications for memory suppliers and downstream purchasers.
These conclusions are drawn from the firm's published estimates and scenarios outlined in the note by Jeff Kim as described above.