Samsung’s profit triples on supercharged AI memory market
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Memory makers like Samsung are diverting production to build more lucrative high-end AI chips. That has created a severe shortage in standard memory for laptops and servers, driving up prices.
PHOTO: REUTERS
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SEOUL - Samsung Electronics’ quarterly profit more than tripled to a record high after global demand for AI servers sharply lifted memory chip prices.
South Korea’s largest company reported a preliminary operating profit of 20 trillion won (S$17.7 billion) in the three months to December, up 208 per cent and beating the average analyst estimate. Revenue rose 23 per cent to 93 trillion won, also a record.
Memory makers like Samsung are diverting production away from everyday tech to build more lucrative high-end chips for AI giants like Nvidia amid a global rush to roll out massive data centres. That has created a severe shortage in standard memory for laptops and servers, causing prices for both DRAM and NAND to surge.
“Hyperscalers and cloud providers are buying a lot of DRAM, and they are willing to pay a price premium,” said Mr Sanjeev Rana, head of research at CLSA Securities Korea.
Average selling prices of DRAM jumped more than 30 per cent sequentially in the December quarter, while those of NAND rose about 20 per cent, he said, adding that prices are likely to remain very strong throughout 2026 and possibly through the first half of 2027. “Even after that, we may not see much correction because demand is just too strong and supply is tight,” he said.
Samsung’s shares have more than doubled in value in 2025 and surged again in January, reflecting hopes for a blowout year after rival Micron Technology gave an upbeat forecast. More than 10 analysts tracked by Bloomberg raised their target price for Samsung in the past week alone.
Memory is required in new arenas including humanoids and driverless cars, while devices touting AI capabilities are also contributing to soaring demand for DRAM and NAND, said Mr Jeff Kim, head of research at KB Securities.
“It’s too early to talk about demand peak-out,” he said. “Investors should buy and hold memory stocks. If the stocks fall after the 20 trillion won earnings figure, it’s an opportunity to buy.”
The company will provide a full financial statement with net income and divisional breakdowns on Jan 29.
This week, Samsung executives at the CES trade show stressed the scope of the memory chip supply crunch, with president Lee Won-jin saying consumer electronics prices are already rising
Counterpoint Research forecasts a 40 per cent price rise for DDR5 – the latest generation of conventional DRAM used in computers and servers – in the current quarter compared with the prior three months, followed by an additional 20 per cent growth in the second quarter.
Samsung, which has trailed SK Hynix and Micron in high-bandwidth memory, delivered its cutting-edge HBM4 samples to Nvidia in 2025 for qualification testing. That has raised hope that Samsung may be able to close the gap with its rivals in a race to begin mass production in the first half of 2026 to support Nvidia’s upcoming Rubin processors.
Mr Rana expects Samsung’s total HBM shipments to triple in 2026 as HBM4 enters commercial supply. BLOOMBERG
