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KB Securities: AI Model Competition to Drive Growth for Samsung and SK Hynix
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-08
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KB Securities predicts that intensifying competition in global AI models will structurally boost memory demand, favoring Samsung Electronics and SK Hynix.
What Happened
AI Model Competition and Memory Demand: KB Securities suggests that the escalating rivalry between US and Chinese AI models will accelerate structural demand for memory semiconductors. High-performance models increase computational requirements, while cost-efficient models expand the user base, both driving higher memory consumption.
Memory Market Outlook: The memory market is expected to enter a strong upward cycle next year, characterized by simultaneous growth in prices and shipment volumes. With limited new supply, the market is likely to face tighter supply-demand conditions, further benefiting manufacturers.
Big Tech AI Investment: Aggressive infrastructure investments by hyperscalers like Amazon and Google are projected to continue for the foreseeable future. While these investments currently pressure free cash flow, profitability is expected to improve significantly by 2028 as cloud utilization and pricing power grow.
Top Picks: KB Securities identifies Samsung Electronics and SK Hynix as the primary beneficiaries of this cycle. The firm maintains that the robust memory market expansion will be the key catalyst for record-breaking financial performance for both companies.