TL;DR
Samsung forecasted a roughly threefold jump in fourth-quarter operating profit driven by sharply higher memory prices amid strong AI-related demand. Analysts and industry data cited in the report suggest prices could continue rising into 2026, with meaningful supply relief still years away.
What happened
In a Thursday disclosure, Samsung projected fourth-quarter operating profit of about $13.77 billion (20 trillion won), up from roughly $4.4 billion a year earlier, and forecasted revenue near $64 billion (93 trillion won), a year‑over‑year increase of roughly 23%. The company’s outlook arrives as prices for NAND flash and DRAM have climbed steeply after AI accelerator and server demand outstripped inventories. Industry reports cited in the story indicate vendors including Samsung, SK Hynix and Micron have announced or considered large price hikes — a mid‑2025 increase of about 50% followed by possible first‑quarter 2026 rises of as much as 60–70% — leaving buyers facing more than double the cost for some memory year over year. Makers have shifted capacity toward server DRAM and HBM for AI deployments, and moves such as Micron discontinuing its Crucial consumer line reflect that shift. Analysts quoted say DRAM prices likely won’t peak until at least 2026, and new fabrication projects will take several years to bring additional supply online.
Why it matters
- Consumers and PC builders face substantially higher prices for DRAM and NAND as vendors prioritize AI and data‑center demand.
- Memory manufacturers are reporting much stronger margins, driving significant profit gains for major suppliers like Samsung.
- Capacity shifts toward server and high‑bandwidth memory mean continued scarcity in consumer segments.
- Long lead times for new fabs imply that elevated memory prices may persist for multiple years.
Key facts
- Samsung forecast Q4 operating profit of approximately $13.77 billion (20 trillion won).
- Samsung expects Q4 revenue around $64 billion (93 trillion won), about 23% higher year over year.
- Reports cited indicate memory price increases: roughly 50% in late 2025 plus potential first‑quarter 2026 hikes of about 60–70%.
- Combined price moves could result in buyers paying more than double year over year for some memory products.
- Major vendors referenced include Samsung, SK Hynix and Micron.
- Vendors have shifted production focus from consumer modules and SSDs toward server DRAM and high‑bandwidth memory (HBM).
- Micron recently ended its Crucial consumer brand product lines (consumer SSDs and memory modules).
- TechInsights data in the article predicts DRAM prices won’t peak until at least 2026 and may stay fairly flat through 2027 before rising again in 2028.
- Micron plans to break ground on a New York megafab on January 16; new fabs generally require three to four years to become operational.
What to watch next
- Samsung’s finalized Q4 earnings release to confirm actual operating profit and revenue figures.
- Announcements from Samsung, SK Hynix and Micron on whether planned price hikes are implemented and at what scale.
- Progress and timelines for new fabrication projects (for example, Micron’s New York megafab) that could affect future supply.
- not confirmed in the source
Quick glossary
- DRAM: Dynamic Random‑Access Memory — volatile memory used for system RAM in PCs, servers and other devices.
- NAND flash: A type of non‑volatile storage used in SSDs, USB drives and many mobile devices to store data without power.
- HBM: High‑Bandwidth Memory — a stacked memory technology used in high‑performance GPUs and AI accelerators for faster data throughput.
- Fab: Semiconductor fabrication plant where integrated circuits and memory chips are manufactured; building and ramping fabs typically takes several years.
Reader FAQ
Why are memory prices rising so sharply?
The article attributes the surge to intense demand from AI accelerators and servers combined with tight inventories and a reallocation of capacity toward higher‑margin server and HBM products.
How much profit is Samsung expecting in Q4?
Samsung forecast about $13.77 billion in operating profit for the fourth quarter and roughly $64 billion in revenue.
When will memory prices peak or return to normal?
TechInsights cited in the story says DRAM prices won’t peak until at least 2026, with prices expected to remain relatively flat through 2027; a full return to lower prices is not specified.
Will new fabs provide quick relief?
No — the piece notes new wafer‑fabrication projects typically require three to four years to come online, so they will not offer immediate relief.
STORAGE While you pay through the nose for memory, Samsung expects to triple its profits in Q4 Memory pricing expected to surge another 60% in Q1 with relief years away…
Sources
- While you pay through the nose for memory, Samsung expects to triple its profits in Q4
- Samsung Electronics estimates nearly three-fold profit …
- Samsung forecasts profit to triple to record high as it rides …
- Samsung Posts Record Profit After AI Supercharges …
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