Samsung Electro-Mechanics is emerging as an AI infrastructure titan as advanced substrates become the bottleneck for AI scaling. Per @jukan05, it will supply FC-BGA substrates for Broadcom's most advanced AI accelerators from the second half, joining NVIDIA, Google, Amazon and Apple. With Ibiden and Shinko at full capacity, it is the only tier-1 player with the capex to scale large-area substrates. AI servers also need 3-4x more MLCCs, where Samsung and Murata own the IP and earn premium margin. … Show more

Samsung Electronics' extraordinary profitability despite an FX hit and rising DRAM prices undermine the case for a memory-price crash. It is the world's most profitable company. Wall St Engine's Q3 summary reports $80.4B in operating profit, up 783% year over year, DRAM selling prices up about 20% quarter over quarter, and Samsung's expectation that memory supply stays tight into 2028. x.com 

Murata, Samsung Electro-Mechanics, Taiyo Yuden, Yageo and TDK look priced too hot even though MLCC fundamentals are booming. Taiyo Yuden cautioned that with 30-week lead times, ODMs are buffering inventory and part of the order book is panic buying. Samsung Electro-Mechanics' CFO said low-to-mid tier margins could face pressure in 18-24 months as Chinese rivals expand. Morgan Stanley and Citi analysts warned that at forward P/Es above 40x, any late-2026 capex slowdown could hit multiples hard. … Show more

High-end ABF substrates are the next AI hardware bottleneck, giving Samsung Electro-Mechanics a large opportunity, per Meritz Securities. As AI accelerators scale, package areas are growing over 5x and pin counts up to 100x, while Ajinomoto, with over 90% of raw film supply, is maxed out and Ibiden runs at full capacity. Samsung Electro-Mechanics is rapidly expanding FC-BGA capacity to capture unallocated GPU demand, and Nvidia's 2028 Feynman chips may need 3-5x the substrate of 2026 designs. … Show more

Samsung Electro-Mechanics is breaking into AI packaging by supplying silicon capacitors for Intel's EMIB, which is why the stock is surging. TSMC sourced silicon capacitors in-house, shutting outsiders out, but Intel must buy them. SEMCO is the only company with both silicon capacitor and substrate businesses, the top-value EMIB part, so it can supply both turnkey with strong bargaining power. It won a contract over $1B versus a few million dollars of such revenue last year. x.com 

Samsung has the most upside among the three memory makers because it holds memory, foundry and packaging under one roof, letting it shorten development cycles and give customers more options. Its HBM4 collaboration on AMD's MI455X with 432GB of HBM4, plus foundry talks, shows a major AI customer taking it seriously again. Expect strong DRAM, NAND and HBM4 contributions. @JonahLupton notes it trades at 4.4x NTM EPS, and HBM prices rising at least 100% in 2027 may not be in estimates. x.com 

Samsung Electronics is due to catch up with Micron and SK Hynix. Its in-house base die gives it the best HBM4/4e, so it should gain more HBM share than expected, and HBM should be next year's big surprise as pricing rises faster than conventional memory. Its leading-edge foundry, including Taylor in the US, matters with TSMC sold out. The strike that drove its underperformance is over, its other businesses are irrelevant to the bottom line next to memory, and it is far cheaper than peers. x.com 

Memory's thesis keeps getting better as next-generation HBM pricing roughly triples. Per @EhrmantrautCap_, HBM3E sold at $1.50 per Gb, while Samsung is negotiating around $4.50 or more for HBM4 with major customers, before volume even ramps. Memory has been one of the best holds all year, and it is hard not to stay bullish even after the run. x.com 

The memory thesis has shifted from pricing power to volume plus duration, and Samsung offers it at about 3x next year's earnings on KB Securities' math, which the $5 trillion proxy for the shortage cannot match. KB raised its hyperscaler AI spending forecast to $1.3 trillion and warned of an unprecedented 2027 memory shortage, with Samsung and SK hynix inventories below 10 days in Q3. Samsung plans to lock about 70% of memory output into long-term deals through 2031. x.com 

Memory demand growth should keep outpacing new supply for Samsung, SK hynix and Micron, even though several new supply announcements have come in and more will follow while prices stay elevated. Chinese supply will have no effect on HBM. Caution is warranted, but the stance remains bullish. x.com