Samsung may already sell out of its entire 2027 memory supply

It's a great time to be in the memory chip business, and as one of the leading players in this segment, Samsung is among the very few companies taking full advantage of the insatiable demand and astronomical prices.

Such is the demand that analysts believe that Samsung may soon end up selling out of its entire memory supply for 2027.

KB Securities analyst Jeff Kim highlights in a note to investors that Samsung will realize full-scale earnings growth in the ongoing period as demand from AI chipmakers continues to grow. The analyst expects DRAM and NAND memory markets to remain in tight supply for years.

Kim believes that Samsung may end up selling out of its entire memory output through 2027. Companies that need these memory chips are increasingly looking to ink long-term deals with suppliers like Samsung, with some even offering 5-years deals until 2030 just to have adequate memory chip supply.

On the other hand, suppliers like Samsung are striking a balance between long-term agreements and higher prices, emphasizing instead on shorter duration agreements which enables them to better lock memory chip prices as they continue to rise month over month.

These market dynamics are pushing investors to pour into Samsung Electronics stock, which continues to set new record highs and shows no signs of running out of steam just yet.