Samsung’s 783% profit surge proves how powerful the AI memory cycle has become. HBM demand remains strong, while server DRAM and enterprise SSDs continue benefiting from hyperscaler spending. But investors should distinguish record earnings from accelerating earnings.
Memory is cyclical. Extraordinary margins eventually attract new capacity from Samsung, SK hynix, Micron and Chinese suppliers. If supply catches up faster than demand, pricing power can weaken before AI demand actually slows.
That is why Samsung’s muted stock reaction matters. The market is looking beyond Q3 profits and asking whether these margins can survive into 2027.
I choose ②. I’m not calling the memory cycle over, but the easiest part of the trade may be behind us. The next catalyst is whether pricing power survives rising supply.
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- blimpy·10-08 15:52China supply is the swing factor here. If their ramp slips, pricing power can hold longer than the market thinksLikeReport