Samsung warns AI memory shortage will worsen through 2027
For the cio of a regional bank setting 2027 budgets
Samsung said in a press release on Oct. 29 announcing its third quarter results that it expects demand for memory to "far exceed" supply in 2027.1
Samsung said the demand will be driven by company spending on AI infrastructure, which it expects to reach a level it described as historic.1 Jaejune Kim, executive vice president of memory, said on the Oct. 29 earnings call that demand growth outpaced Samsung's production increases, and that hyperscalers and AI frontier customers are expanding data center investment in 2027.1
Samsung said market prices for memory were higher across all applications because of AI-driven server demand, and that it aims to secure multi-year contracts for its products.1
The Verge reported that Kim said on the call that "tight supply conditions" will continue in 2028.2
The Verge also reported that Samsung said its 2027 supply of HBM RAM is already sold out.2
Samsung's memory business posted record quarterly revenue and operating profit, with memory sales up 16% quarter over quarter and 427% year over year, according to a company presentation cited by PYMNTS.1
Banks buying AI servers or renting cloud AI capacity should expect hardware and cloud costs to stay high, since hyperscalers and other large buyers are locking in supply first. Technology and procurement teams may want to budget for higher prices through 2027 and test whether cloud contracts delay the increases.
Our take. Samsung's memory sales rose 427% in a year, and it wants multi-year contracts. The Nasdaq lost $1.2 trillion this month on doubts AI pays off. Your 2027 AI budget pays the first price before the second question is answered.
Action. IT finance: Add a memory-driven price increase line to 2027 GPU server and cloud AI inference budgets, and ask vendors about price protection.
Sources
- ReportPYMNTS | Samsung Warns AI Memory Shortage Will Worsen Through 2027 PYMNTS
- Also reported bySamsung’s expecting the RAM shortage to last until at least 2028. The Verge