02 / FOLLOW THE MONEY A bigger business. A far richer sales mix.

The size of the profit matters. The quality of the profit matters more.

* Preliminary guidance. ¹ Operating profit / revenue; TIC calculations. Revenue growth: +126.6% YoY, +13.7% QoQ. Operating profit: +782.5% YoY, +20.0% QoQ. [1]

Where the money is coming from

Samsung’s Q2 release reported DS revenue of KRW 127.5 trillion and operating profit of KRW 89.2 trillion. Higher memory prices and a greater server-product mix supported earnings; HBM4 sales scaled up. Mobile and Networks generated KRW 33.2 trillion of revenue but a KRW 0.7 trillion operating loss. The consumer and chip businesses can respond differently to the same component-price cycle. [2]

Cash is the next test

Q2 operating cash flow was KRW 105.08 trillion; purchases of property, plant and equipment were KRW 14.11 trillion. Subtracting the latter gives KRW 90.97 trillion, a simple cash-flow-minus-PP&E measure, not a company-defined free-cash-flow figure. Net cash was KRW 167.59 trillion at June 30. [3]

03 / THE AI ENGINE NOBODY SEES The processor gets the fame. Memory does the unseen work.

An AI system is only as useful as the data it can move, hold and retrieve.

Think of a processor as the engine and memory as its immediate supply of working material. An engine that waits for data is expensive idle capacity. Faster memory helps keep more of that computing investment productive. This is why the AI opportunity reaches well beyond the companies designing GPUs.

The commercial milestone has already happened

Samsung announced commercial HBM4 shipments on February 12, 2026. At NVIDIA GTC in March, it described HBM4 as being in mass production and designed for NVIDIA’s Vera Rubin platform. HBM4E sample shipments followed on May 29. Samples, commercial shipments and a platform relationship represent different stages; none establishes an undisclosed contract value. [5, 6, 7]

That changes what investors should ask. Qualification remains relevant for each customer and product, but the broader story is now about the scale of shipments, manufacturing yields and how much profit each generation can earn.

Four details that turn technology into returns

A technically impressive chip must still be manufactured economically and delivered consistently.

04 / COMPETITION FOR THE NEXT DECADE One AI economy. Different ways to own it.

These five companies capture different parts of the same infrastructure investment.

Sources [1, 8]. * TIC calculations from reported operating profit and revenue. Samsung/SK hynix use K-IFRS; U.S. companies use GAAP. SK hynix release figures are preliminary. Period ends: Sep. 30, Jun. 30, Sep. 3, Jul. 26 and Aug. 2, respectively. Fiscal calendars and business mixes differ.

MARKET SNAPSHOT / PROVIDER DATA RETRIEVED OCTOBER 8 [9]

¹ Based on provider earnings estimates, not company promises. ² Price change, not total return. U.S. close: Oct. 7; Korean close: Oct. 8. Ratios are provider snapshots and may use different update conventions. [9]

How the economics differ

Samsung, SK hynix and Micron provide memory and storage. NVIDIA builds computing platforms; Broadcom designs custom accelerators and networking products, alongside its software business. TSMC is the key foundry competitor to examine when assessing Samsung’s contract manufacturing opportunity. [2, 4, 8]

05 / WOULD YOU INVEST TODAY? A great company. At what price?

The opportunity depends on the earnings that survive after the exceptional quarter.

Samsung’s nearly threefold 52-week price increase shows that investors have already recognized much of the change. Its provider snapshot shows 2.95× book value and 11.79× trailing free cash flow, alongside the P/E figures in the preceding section. Those measures offer different perspectives on a capital-intensive business. [9]

The forward P/E looks inexpensive only if the expected earnings arrive and endure. A simple illustration: if profit falls by half and the share price stays unchanged, the P/E doubles. A lower multiple cannot, on its own, tell us whether a stock is cheap or its earnings are near a cyclical peak.

2027 SCENARIOS / TIC ANALYSIS, NOT FORECASTS OR PRICE TARGETS

How to access Samsung shares

The primary Korean shares are 005930 (common; ISIN KR7005930003) and 005935 (preferred; ISIN KR7005931001). Samsung also identifies London-listed GDRs; use the exact ISIN to verify the receipt and share class with your broker. Different classes and receipts can have different prices, liquidity and rights. [10]

IBKR advertises KRX access for eligible clients. Fidelity’s published direct international-market list excludes Korea; Schwab’s Global Account information and Tiger Trade’s public offering do not establish direct Samsung KRX access. Confirm your regional entity, instrument, permissions, FX costs and fees before trading. These links are access resources, not endorsements. [11]

06 / THE INVESTOR CALL OUTLOOK Follow the evidence. Then follow the opportunity.

The next chapter will be measured in shipments, margins and cash, not product announcements alone.

Start with the October 29 detailed earnings release. Track HBM commercial adoption, DRAM and NAND prices, foundry utilization, capital spending and cash conversion over the next 6–12 months. Compare those results with customers’ infrastructure budgets. [4]

Educational research, not personalized investment advice or an offer to buy securities. Prices, estimates and preliminary results can change. Stocks, foreign currencies and depositary receipts can lose value; past performance does not predict future returns. Scenarios are TIC interpretations.