S&P lifts Samsung outlook on AI memory supercycle

S&P Global Ratings revised its outlook on Samsung Electronics to positive from stable on Monday, citing expectations that an AI-driven memory supercycle will sustain strong earnings for at least two more years.TokenPost+2

Record Revenue Forecasts

The agency affirmed Samsung's long-term issuer credit rating at AA- and its short-term rating at A-1+, while upgrading the outlook to reflect what it called structural growth in the memory industry. S&P said Samsung, as the world's largest memory chipmaker, is best positioned to benefit from the current supercycle driven by surging demand for high-bandwidth memory used in AI infrastructure.CHOSUNBIZ+2

S&P projects Samsung's annual revenue will reach a record 683 trillion won ($495 billion) in 2026 before climbing to 821 trillion won in 2027, according to Aju Press. The agency said favorable industry conditions, including a prolonged supply shortage and strong HBM demand, are likely to support memory prices through 2027.AJP

"The positive outlook reflects our expectation that Samsung will strengthen its technological competitiveness, expand its market share in HBM and foundry businesses, and deliver solid operating performance over at least the next two years as the memory industry continues its structural growth," S&P said in its report.CHOSUNBIZ+1

A Year of Record-Breaking Results

The outlook revision caps a stretch of extraordinary results for Samsung. The company reported record first-quarter 2026 revenue of 133.9 trillion won and operating profit of 57.2 trillion won, followed by preliminary second-quarter operating profit of 89.4 trillion won — a 19-fold increase from a year earlier. Samsung's Device Solutions division, which houses its memory business, saw revenue surge 225% year-on-year in the first quarter as AI infrastructure spending drove chip prices sharply higher.CNBC+3

Investor Caution Persists

Despite the earnings momentum, investors have shown unease about how long the boom can last. Samsung shares fell nearly 7% after the record second-quarter preliminary results in early July, weighed down by concerns over rising capital expenditure and the sustainability of AI-driven demand. S&P's endorsement may help ease some of those worries, though the agency's positive outlook is itself contingent on Samsung maintaining its HBM gains and managing spending discipline amid a massive fabrication plant expansion.Reuters+2