Nomura and Bank of America linked Samsung's memory outlook to supplier-favorable contracts and stronger DRAM and NAND pricing as AI server demand lifted DDR5 and NAND markets.
Samsung Electronics has placed 60% to 70% of its memory sales under long-term supply agreements with supplier-favorable pricing, according to a Bank of America report, a structure that may reduce near-term pricing volatility while preserving upside in a strengthening market. BofA said the contracts cap quarterly price cuts at about 5% while allowing 10% to 20% increases, supported by strong AI server demand and sharply higher memory prices, including 16Gb DDR5 spot prices up 733% year on year to $51 and 1Tb NAND wafer prices up 415% to $26.4. Separately, BlockBeats reported on Aug. 2 that analyst Jukan, citing a Nomura report, said Samsung's operating profit forecast was raised from about KRW 391 trillion to KRW 635 trillion and then KRW 774 trillion, with free cash flow projected to rise from KRW 296 trillion to KRW 456 trillion and KRW 563 trillion, and shareholder return yield from 11.2% to 17.6% and 22.3%.