Woofun AI reports that TS Lombard assesses South Korean memory chip stock valuations as approaching reasonable levels, suggesting market expectations for future profitability may be excessive. Traditional DRAM contract price increases decelerated from 93%–98% in Q1 to 58%–63% in Q2, with a further slowdown to 13%–18% in Q3, with spot prices for DRAM and HBM already declining.

Long-term supply agreements provide volume support but constrain price hikes, with protective effects weakening over the next year. HBM annual contract increases lag behind traditional DRAM, and competition is rising with ChangXin sampling and TSMC entering HBM4 processes. While consensus expects 36%–40% EPS growth for 2027, TrendForce forecasts only 15%–20% unit supply growth. Current valuations for Samsung Electronics and SK Hynix appear to reflect earnings 40%–50% below consensus, though cycle risks persist.