Samsung Has Already Sold Out Its Memory Supply Through 2027

The tech industry is grappling with a growing memory shortage, and the latest data suggests no relief is in sight. Samsung has already sold 80% of its projected 2027 memory supply through long-term contracts. This leaves the world’s largest tech corporations, currently focused on expanding data centres, competing fiercely for the remaining 20% of available stock.

Artificial Intelligence Drives Prices Up

The primary driver of this market tension is the rapid advancement of artificial intelligence. High Bandwidth Memory (HBM)—essential for graphics processors and AI accelerators—is particularly critical. Samsung has already secured 100% of its HBM production through annual contracts. Experts predict that prices for this specialised memory could surge by 100% to 150% next year.

This trend will inevitably impact everyday consumers. Currently, 70% of the DRAM and NAND memory market is locked into five-year contracts. Consequently, analysts forecast that starting early next year, RAM prices will see double-digit percentage increases every quarter.

Market and Investor Outlook

Despite recent stock market volatility and a degree of pessimism within the tech sector, Samsung’s financial position remains robust. Investors estimate that the company’s operating profit could rise by 57% by 2027, reaching 555 trillion Korean won (over 4 billion dollars). Although Samsung’s share price has dipped by 19% in recent weeks, experts attribute this to temporary market fluctuations rather than fundamental issues within the company.

For consumers, this means that prices for computer components, server equipment, and potentially smartphones are set to rise in the near future. While panic buying is not recommended, those planning to upgrade their hardware should be aware that the global memory shortage will significantly drive up costs.