[Edaily Reporter Park Jung-Soo ] On the 15th, KB Securities maintained a positive outlook on SamsungElectronics(005930), stating that the recent stock price correction was merely the result of weakened investor sentiment due to concerns over a slowdown in artificial intelligence (AI) investment, and that the core fundamentals of the memory market remain unchanged. The firm did not provide an investment rating or target price. The previous day’s closing price was 295,000 won.
Kim Dong-won, Head of Research at KB Securities, analyzed, “The core fundamentals—the long-term growth potential of the AI infrastructure industry and the memory supply shortage—have not changed compared to a month ago,” adding, “The recent stock price correction largely reflects a contraction in investor sentiment rather than changes in earnings or the structure of the memory industry.”
The firm projected that the memory market conditions will become even tighter starting in 2027. KB Securities expects 2027 to be the period with the most severe supply shortage in the 70-year history of the memory semiconductor industry. The supply shortage is likely to persist until at least 2028, and the firm forecasted that general-purpose DRAM production capacity will face structural constraints due to the expansion of HBM-centered investments.
In particular, the firm projected that HBM’s share of global DRAM wafer production would more than double, rising from 15% in 2026 to 34% in 2027. With most new production capacity concentrated on HBM, the expansion of general-purpose memory supply will be effectively limited, and the supply shortage in the general memory market is expected to worsen.
The report also analyzed that increased investment in AI data centers will support memory demand. With the U.S. Federal Energy Regulatory Commission (FERC) recently streamlining the grid connection process for AI data centers, the connection period—which previously took more than five years—is expected to be shortened to about one to two years. Consequently, the pace at which U.S. Big Tech companies build AI data centers is expected to more than double compared to previous rates.
Meta plans to secure a total of 14 GW of AI computing infrastructure by adding another 7 GW in 2027, following the construction of a 7 GW AI data center this year. The Hyperion data center in Louisiana is also expected to expand to at least 5 GW, with the investment scale increasing from the current $10 billion to over $50 billion.
KB Securities viewed SamsungElectronics’ recent stock price decline as a buying opportunity. Division Head Kim stated, “This correction is a price adjustment caused by the market’s excessive concerns, not a deterioration in fundamentals,” adding, “From a medium- to long-term perspective, this will be an opportunity to increase holdings.”