This article first appeared on GuruFocus .
Samsung Electronics ( SSNLF ) is signaling a potential shift that could reshape how memory chips are bought and sold, as the company considers moving from short-term agreements to multi-year contracts lasting as long as three to five years. Speaking at the annual general meeting, co-CEO Jun Young-hyun pointed to expectations that demand for AI memory could continue rising into 2026, suggesting longer contracts may help stabilize supply and provide greater visibility for both producers and customers navigating an increasingly tight market.
The market response was immediate. Samsung shares climbed as much as 6.5% on the Korea Exchange, extending gains for a third straight session, while affiliated names including Samsung C&T and Samsung Life Insurance also posted strong advances. The reaction suggests investors are viewing the potential contract shift as a way to support pricing stability and reduce volatility, particularly as AI-driven demand continues to reshape the semiconductor landscape.
At the same time, supply pressures remain entrenched. Samsung, SK Hynix ( HXSCL ) and Micron Technology ( NASDAQ:MU ) continue to dominate global memory production, and their pivot toward specialized chips used in Nvidia's AI accelerators has contributed to tighter availability of conventional memory. That imbalance is already pushing up costs across industries, and SK Group Chairman Chey Tae-won indicated the shortage could persist for another four to five years, reinforcing the idea that longer-term agreements may become more common as companies look for ways to manage ongoing constraints.
