Samsung Electronics stocks surged 5.79% to 274,000 won at market opening on the 22nd, following a 6.15% gain the previous day, marking over 10% growth in two consecutive trading sessions. The rally was driven by Standard & Poor's (S&P) upgrading Samsung's rating outlook from 'stable' to 'positive' on the 21st, reflecting strong memory semiconductor performance. The gains came as bargain hunters returned to AI and semiconductor stocks on the New York Stock Exchange after recent corrections, with Samsung benefiting from both the global sector recovery and the positive credit rating action.
S&P Upgrades Samsung Rating Outlook Citing Memory Supercycle Benefits
S&P upgraded Samsung Electronics' rating outlook from 'stable' to 'positive' in a report dated the 21st, citing the company's strong memory semiconductor performance. The credit rating agency projected Samsung, as the world's largest memory semiconductor manufacturer, will be the biggest beneficiary of the memory supercycle.
S&P forecasted that memory supply shortages will remain difficult to resolve for at least the next two years. The agency projected global hyperscalers' capital expenditures will expand to approximately $1 trillion by 2028, representing a fourfold increase from 2024 levels, with a significant portion directed toward AI data center construction.
Memory Supply Shortage Projected Through 2027 Amid Hyperscaler Expansion
S&P analyzed that actual supply increases will only become visible after 2028, leading to intensified supply-demand imbalances in 2026-2027. The agency attributed this projection to the gap between accelerating AI infrastructure investment and the timeline for new production capacity to come online.
The report identified the four major global hyperscalers as key drivers of memory demand, with their combined 2028 capital expenditure reaching $1 trillion compared to 2024 baseline levels.
Samsung Advances HBM4 Technology and Foundry Process Yields
S&P assessed that Samsung achieved meaningful progress in HBM and foundry operations. The agency determined Samsung secured technological advantages by combining 1c DRAM with 4nm base die in its latest HBM4 products, and largely resolved yield issues experienced with the previous-generation HBM3E.
In the foundry segment, S&P noted that advanced process yields entered a normalization phase. The report stated that if production capacity constraints at Taiwan's TSMC, the largest foundry operator, materialize, Samsung could emerge as a viable alternative.
FAQ
What caused Samsung Electronics stocks to rise over 10% in two days?
Samsung Electronics stocks gained over 10% across two consecutive trading sessions due to S&P upgrading the company's rating outlook from 'stable' to 'positive' on the 21st, combined with bargain hunting in AI and semiconductor stocks on global markets following recent corrections.
Why did S&P upgrade Samsung's rating outlook to positive?
S&P upgraded Samsung's rating outlook based on strong memory semiconductor performance and the projection that Samsung, as the world's largest memory manufacturer, will be the primary beneficiary of the memory supercycle, with supply shortages expected to persist through at least 2027 while hyperscaler capital expenditures quadruple to $1 trillion by 2028.
