Memory inventories at Samsung Electronics and SK hynix fell below 10 days of supply in the third quarter, raising the prospect that sellable products could run out next year. KB Securities said on the 7th that surging artificial-intelligence infrastructure spending could produce the tightest memory supply conditions in history and named both companies as its top semiconductor picks. The brokerage raised its estimate for major cloud companies' AI infrastructure investment next year to $1.3 trillion, 60% above a year earlier, as cloud AI services, token-based billing, agentic AI and model hosting generate direct revenue. Memory's share of that spending is projected to rise to 40% this year and 57% next year, from 14% in 2025, while TrendForce forecasts 68% next year. Demand is expected to rise across high-bandwidth memory (HBM), server DDR5, enterprise solid-state drives (eSSD), DRAM and NAND, with bit-based DRAM and NAND demand growth outpacing supply growth by more than 10 percentage points next year. HBM4, the next-generation high-bandwidth memory, requires three times the wafer capacity of conventional DRAM, potentially diverting production capacity from standard memory. Samsung Electronics and SK hynix shares have nevertheless dropped 38% from their peaks over the past three months, leaving them trading at about three times next year's expected earnings. KB Securities expects record earnings over the next three years and continued large-scale shareholder returns, with a strong re-rating beginning from what it described as extreme undervaluation.