International credit rating agency S&P Global Ratings has forecast that Samsung Electronics will maintain solid earnings over the next one to two years, supported by growing semiconductor demand, while its credit metrics are expected to strengthen.
On February 4, S&P highlighted that strong demand in the high-margin, high-growth memory semiconductor segment is expected to drive a significant increase in profitability. The agency projected that Samsung Electronics (AA-/Stable/A-1+) could see its EBITDA margin rise by approximately 10 percentage points, reaching the mid-30% range.
The continued expansion of AI-related investments by large-scale data center operators is expected to sustain strong demand for Samsung’s high-bandwidth memory (HBM).
S&P noted that as major memory manufacturers increase production in high-margin products such as HBM and server DRAM, the prices of standard memory chips are also likely to remain elevated. This favorable market environment is expected to support overall operational performance at Samsung Electronics.
The agency added that the risk of a reversal in the AI-driven demand cycle is currently low. Considering the ongoing severe memory shortages and the lack of significant capacity expansions in the next one to two years, the likelihood of a sharp downturn in the short-term market appears limited.
S&P further projected that Samsung’s earnings improvement is likely to continue for the foreseeable future. The agency cited that DRAM and NAND memory prices more than doubled in the fourth quarter, and tight supply conditions are expected to sustain selling prices over the next one to two years. As the world’s largest manufacturer of standard memory chips, Samsung Electronics stands to benefit substantially from these market dynamics.
Moreover, S&P highlighted that capital expenditures are expected to rise in line with efforts to expand memory production capacity over the next one to two years. Despite these increased investments, the company’s robust operating cash flow is anticipated to further strengthen its already solid net cash position.
Meanwhile, on the 4th, Samsung Electronics’ market capitalization surpassed 1,000 trillion won, making it the first Korean company to achieve this milestone.
