Memory Chip Stocks Surge: Samsung Sees AI-Driven Shortages Lasting Through 2028

What Samsung's earnings call revealed

Semiconductor profit: Samsung's semiconductor division posted an operating profit of approximately 89.2 trillion won in Q2 2026, up from negligible levels a year earlier . Consolidated net profit rose roughly 14-fold . The company said the quarter marked a new high for both revenue and operating profit, extending momentum from the first quarter .

Multi-year supply contracts: Samsung announced it has signed long-term supply agreements (LTAs) with the five largest global data-center operators and is nearing deals with five other major players . Approximately 60% to 70% of its production is now under long-term contracts, with a formalized strategy to expand multi-year deals . "Almost all customers are requesting multi-year supply contracts," Jaejune Kim, executive vice president of Samsung's memory business, told analysts on the call . The company's HBM4 sales jumped threefold in the quarter .

Projected duration of global memory shortages: Samsung management delivered a clear and extended outlook. "The supply shortage in 2027 is expected to worsen compared to this year, and it is expected to continue in 2028," Kim said . In its statement, Samsung said it expects global memory chip shortages to "become more acute and extend into 2028" . The company stated, "Memory will be even shorter next year" . The driver is relentless AI infrastructure spending: "In H2 2026, the Memory Business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI," Samsung said in its earnings release .

The broader context

Thursday's rally capped a volatile period for memory stocks. Earlier in July, the sector had entered a bear market, with investors worrying that AI capital spending might be overheating . Samsung's preliminary earnings guidance on July 7 had initially spooked markets — despite flagging a 19-fold profit jump, investors wiped more than $80 billion off Samsung's market value over concerns about the AI boom's longevity . The July 30 detailed report, with its record numbers and extended shortage timeline, reversed that sentiment sharply.

The Philadelphia Semiconductor Index (SOX) surged more than 5% on July 22 after Morgan Stanley analyst Joseph Moore published a report noting that memory chip shortages were worsening and prices could rise at least 25% between Q2 and Q3 . Thursday's Samsung-specific news added momentum, with Sandisk topping S&P 500 gainers and Micron also rising sharply .

Key takeaway

Samsung's Q2 2026 earnings call confirmed that the AI-driven memory supercycle is far from peaking. With more than 250-fold profit growth, over two-thirds of production locked into long-term deals, and a company forecast that shortages will last until at least 2028, the structural bull case for memory chip stocks remains intact — even if periodic sell-offs create volatility.