Samsung Electronics and SK Hynix are expected to continue their record-breaking performance in the second quarter of this year. Despite concerns over overheating AI investments and stock price volatility, demand for high-bandwidth memory (HBM), general DRAM, and NAND flash is expanding, indicating that the memory supercycle is ongoing.
According to industry sources on June 13, analysts predict that the combined operating profit for Samsung Electronics and SK Hynix will exceed 150 trillion won in the second quarter. Samsung is expected to report an operating profit in the 86 trillion won range, while SK Hynix is projected to achieve around 64 trillion won.
Both companies reported record-breaking results in the first quarter. Samsung achieved an operating profit of 57.2 trillion won, marking its highest quarterly profit ever. SK Hynix also set a new record with an operating profit of 37.6 trillion won. These results were interpreted as signals that the memory market has entered a boom phase, driven by increased AI server investments that boosted demand for HBM, high-capacity DRAM, and enterprise SSDs, alongside rising prices for general memory.
Both companies are likely to report improved results compared to the first quarter. Although both posted record operating profits, the first quarter is traditionally a slow season, leading to expectations of a sharper increase in performance in the second quarter. Additionally, the upward trend in memory prices continues, with increased AI server investments driving demand for HBM and maintaining a supplier advantage for general DRAM and NAND.
Concerns about a semiconductor peak-out have been raised due to the overheating of AI infrastructure investments and stock price fluctuations. However, actual performance forecasts are moving in a different direction. AI demand is not limited to high-performance products but is spreading to general products such as server memory and enterprise SSDs, broadening the recovery in the market.
Samsung is benefiting significantly from rising prices in the general memory market due to its large production capacity. While SK Hynix leads the HBM market, the overall rebound in DRAM and NAND prices is also enhancing Samsung's performance.
SK Hynix's focus on high-margin products centered around HBM is driving its performance. Strong demand from major AI semiconductor clients like Nvidia, coupled with ongoing HBM supply shortages, is sustaining profitability improvements.
This outlook is particularly significant as it indicates that the AI semiconductor boom is not confined to HBM. The effects of production cuts that began last year and the rising demand for memory in AI servers are contributing to price increases for general DRAM and NAND. Buyers are actively securing inventory, and suppliers are gaining leverage in price negotiations.
The industry views the second quarter results as a critical indicator of whether the memory supercycle will continue. Despite recent discussions in the stock market about an AI bubble, the profitability of semiconductor companies appears to be strengthening.
However, whether this trend will persist in the second half of the year depends on the pace of AI server investments and the timing of expanded memory supply. If the increase in HBM production capacity is fully reflected and the upward trend in general memory prices slows, the pace of profitability improvement may be moderated.
An industry insider stated, "Despite concerns over overheating AI investments, the current memory market is still in a phase where demand exceeds supply. The upward price trends for HBM, general DRAM, and NAND are likely to continue, suggesting that the supplier advantage will be maintained for the foreseeable future."
* This article has been translated by AI.
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