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Samsung Warns AI Memory Shortage Will Worsen Through 2027

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Samsung Warns AI Memory Shortage Will Worsen Through 2027

Samsung expects the demand for memory to “far exceed” supply in 2027, the company said in a Thursday (Oct. 29) press release announcing its third quarter financial results.

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That demand will be driven by companies’ capital expenditure on artificial intelligence (AI) infrastructure, which Samsung expects to reach “a historic level” as the AI ecosystem expands and companies across the industry compete for AI leadership, according to the release.

“Despite our effort to increase production, demand growth continued to outpace this,” Jaejune Kim, executive vice president of memory at Samsung, said during a Thursday earnings call. “We plan to maintain our supply response, focused on AI application where demand momentum is strong.”

Later in the call, Kim added that in 2027, “under the trend of expanding the AI ecosystem next year, we expect investment for AI server infrastructure to accelerate as major hyperscalers increase their data center investment and AI frontier customers build out their own data centers.”

During the third quarter, Samsung’s memory business achieved record-breaking results for both quarterly revenue and operating profit as it focused on AI products and experienced robust demand amid continued capacity restraints, per the release.

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Samsung’s memory sales leapt 16% quarter over quarter and 427% year over year, according to a presentation released Thursday.


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