In recent market trend, the significant price increases of DRAM and NAND flash memory have drawn wide attention. Among which, fixed prices for DRAM rose by 22% in April, and NAND flash prices rose by 11%. This price volatility was primarily driven by IT equipment manufacturers rushing to keep chip inventories in react to potential tariff risks triggered by U.S. government policies, leading to a high increase in procurement demand side.
This trend has had a noticeable impact on the market, particularly providing positive support for the earnings outlook of semiconductor giants such as Samsung Electronics and SK Hynix.
Recently, SK Hynix reported its Q1 2025 financial results, with revenue reaching 17.64 trillion won—an 11% decline quarter-on-quarter (compared to 19.77 trillion won in Q4 2024) but a 42% increase year-on-year (versus 12.43 trillion won in Q1 2024). The sequential decline was mainly due to base effects from the previous quarter, while the annual growth reflects a strong recovery in memory market demand.
Samsung stated in its financial report that, for the memory business, revenue was driven by growth in server DRAM sales and meeting additional NAND demand amid stabilizing market prices. However, Samsung noted that overall chip profitability was impacted by declining average selling prices (ASPs), while sales were affected by U.S. export restrictions on AI chips.
Jaejune Kim, Executive Vice President of Samsung’s Memory Business, also pointed out that the company engaged in proactive procurement activities in Q2 ahead of potential reciprocal tariffs under the Trump administration.
Industry experts believe the current high demand may persist, pushing prices even higher. Particularly as major PC manufacturers take actions to keep stocks in advance, the market could see a surge in the short run. However, investors should remain cautious about increased volatility risks, especially given uncertainties in global supply chains and policy changes, which could exert downward pressure on prices.
