Samsung Electronics Seen Reaching $593 Billion Revenue in 2027 After S&P Raises Outlook

S&P’s View of Samsung Electronics’ Future

“Revenue of $493 Billion in 2026, $593 Billion in 2027”

S&P Raises Samsung Electronics Outlook to Positive

S&P Global Ratings raised Samsung Electronics Co.’s rating outlook to positive from stable, citing an expected improvement in earnings over the next two years as the spread of artificial intelligence drives a memory supercycle and bolsters the company’s competitiveness in high-bandwidth memory, or HBM. S&P expects Samsung to be the biggest beneficiary as tight memory supply persists through next year.

In a report dated July 21, S&P wrote that the positive outlook reflects its view that Samsung will expand its market share in HBM and foundry services by strengthening its technology position during a period of structural growth in the memory industry, supporting solid operating performance for at least the next two years.

Samsung, the world’s largest memory chipmaker, stands to gain the most from the memory supercycle, S&P said. Rising investment in AI data centers and constrained supply are pushing prices higher. Some DDR5 chip prices have already risen threefold to fourfold from a year earlier.

Samsung’s annual revenue is forecast to reach about $493 billion in 2026 and about $593 billion in 2027, both record highs. EBITDA is projected to jump from about $65.8 billion in 2025 to about $284 billion in 2026 and about $363 billion in 2027.

Memory shortages are unlikely to ease for at least the next two years, according to S&P. Capital spending by the world’s four largest hyperscalers is projected to reach about $1 trillion by 2028, four times the 2024 level, with a large share going toward AI data center construction. By contrast, meaningful supply growth is not expected until after 2028, deepening the supply-demand imbalance in 2026 and 2027.

Long-term supply agreements, or LTAs, and the expansion of customized memory products should help reduce earnings volatility. With shortages set to persist, customers are seeking supply contracts lasting three to five years. A higher share of tailored products should improve order visibility and help protect profitability during industry downturns.

S&P also expects Samsung to make meaningful progress in HBM and foundry. The ratings firm said Samsung has secured a technological edge in its latest HBM4 products by combining 1c DRAM with a 4-nanometer base die, and that yield issues seen in the earlier HBM3E generation have largely been resolved.

In foundry, yields for leading-edge processes are entering a period of normalization, S&P said. If capacity constraints at Taiwan Semiconductor Manufacturing Co., the market leader, continue, Samsung could emerge as a viable alternative.

S&P also expects Samsung to maintain a cautious financial policy. Annual capital spending is projected to rise from $37.6 billion in 2025 to about $58.5 billion to $60.7 billion over the next two years as production capacity expands. Even so, strong cash generation is expected to lift free cash flow sharply, from $23.9 billion last year to $145 billion this year and $208 billion next year.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com