A recent report from JPMorgan highlights that Long-Term Agreements (LTAs) are fundamentally altering the valuation landscape for memory chip producers. Owing to the soaring demand for AI computational power, cloud service providers are taking the initiative to enter into long-term agreements (LTAs) with memory chip manufacturers to ensure future supply capacity. Buyers are apprehensive about potential supply shortages, while sellers seek to secure order commitments in advance of substantial capital investments. Calculations reveal that, even under optimistic capacity expansion scenarios, the supply of AI memory chips will still fall short of the demand from cloud providers between 2026 and 2030, with an estimated monthly deficit of around 450,000 wafers. As LTAs constitute a growing portion of memory manufacturers' shipment portfolios, traditional P/B (price-to-book) valuation methods have become obsolete, prompting a shift towards the P/E (price-to-earnings) valuation framework. Consequently, JPMorgan has revised its target price for Samsung Electronics to KRW 480,000, substantially raised SK Hynix's target price from KRW 1.8 million to KRW 3 million, and doubled Kioxia's target price from JPY 38,000 to JPY 80,000.