"DRAM Market to Remain in Boom Through Next Year" — DB Securities

[Financial News] The DRAM market is expected to remain in a boom in 2027, following the 2024–2026 period, as tight supply coincides with strong server demand.
According to DB Securities on the 8th, analyst Seo Seung-yeon estimated that Samsung Electronics’ revenue and operating profit in 2027 would reach 968.5 trillion won and 617.3 trillion won, respectively.
Next year’s revenue is expected to increase 36% from this year, while operating profit is projected to rise 64%.
However, Seo forecast that Samsung Electronics’ third-quarter revenue would reach 197.7 trillion won, up 130% from the same period a year earlier, while operating profit would rise 794% year on year to 108.8 trillion won. These figures are expected to fall slightly short of market estimates.
Seo explained, "This is because unfavorable exchange rates and weaker-than-expected performance by the Mobile eXperience (MX) Business are anticipated, despite solid memory shipments and higher selling prices."
Operating profit at the Device Solutions (DS) Division is expected to come in slightly below market expectations at 109.2 trillion won, despite strong memory shipments supported by robust demand for artificial intelligence (AI) servers, due to the stronger Korean won.
Seo forecast, "Despite the launch of new flagship products, the Mobile eXperience (MX) Business is expected to post an operating loss of 1.8 trillion won, below market expectations, as the impact of rising component costs, including semiconductors, continues." He added, "Samsung Display’s operating profit is expected to increase from the previous quarter to 1.1 trillion won, driven by shipments of small- and medium-sized organic light-emitting diode (OLED) panels amid solid customer demand for flagship smartphones."


[email protected] Kim Hak-jae Reporter