AI reminiscence demand has catapulted SK Hynix to a prime place within the world DRAM market, overtaking longtime chief Samsung for the primary time.
In accordance with Counterpoint Analysis data, SK Hynix captured 36% of the DRAM market in Q1 2025, in comparison with Samsung’s 34% share.
HBM chips drive market shift
The corporate’s achievement ends Samsung’s three-decade dominance in DRAM manufacturing and comes shortly after SK Hynix’s working revenue handed Samsung’s in This autumn 2024.
The corporate’s strategic concentrate on high-bandwidth reminiscence (HBM) chips, important parts for synthetic intelligence functions, has confirmed to be the decisive issue available in the market shift.
“The is a milestone for SK Hynix which is efficiently delivering on DRAM to a market that continues to point out unfettered demand for HBM reminiscence,” stated Jeongku Choi, senior analyst at Counterpoint Analysis.
“The manufacturing of specialized HBM DRAM chips has been notoriously tough and people who received it proper early on have reaped dividends.”
SK Hynix has taken the general DRAM market lead and has established its dominance within the HBM sector, occupying 70% of this high-value market phase, in accordance with Counterpoint Analysis.
HBM chips, which stack a number of DRAM dies to dramatically enhance information processing capabilities, have turn out to be elementary parts for coaching AI fashions.
“It’s one other wake-up name for Samsung,” stated MS Hwang, analysis director at Counterpoint Analysis in Seoul, as quoted by Bloomberg. Hwang famous that SK Hynix’s management in HBM chips probably comprised a bigger portion of the corporate’s working earnings.
Monetary efficiency and trade outlook
The corporate is anticipated to report optimistic monetary outcomes on Thursday, with analysts projecting a 38% quarterly rise in gross sales and a 129% enhance in working revenue for the March quarter, in accordance with Bloomberg information.
The shift in market management displays broader adjustments within the semiconductor trade as AI functions drive demand for specialised reminiscence options.
Whereas conventional DRAM stays important for computing gadgets, HBM chips that may deal with the big information necessities of generative AI programs have gotten more and more priceless.
Market analysis agency TrendForce forecasts that SK Hynix will preserve its management place all through 2025, coming to regulate over 50% of the HBM market in gigabit shipments.
Samsung’s share is anticipated to say no to below 30%, whereas Micron Know-how is claimed to achieve floor to take shut to twenty% of the market.
Counterpoint Analysis expects the general DRAM market in Q2 2025 to keep up related patterns throughout phase development and vendor share, suggesting SK Hynix’s newfound management place could also be sustainable within the close to time period.
Navigating potential AI reminiscence demand headwinds
Regardless of the present AI reminiscence demand growth, trade analysts establish a number of challenges on the horizon. “Proper now the world is targeted on the influence of tariffs, so the query is: what’s going to occur with HBM DRAM?” stated MS Hwang.
“Not less than within the brief time period, the phase is much less prone to be affected by any commerce shock as AI demand ought to stay robust. Extra considerably, the tip product for HBM is AI servers, which – by definition – may be borderless.”
Nonetheless, longer-term dangers stay vital. Counterpoint Analysis sees potential threats to HBM DRAM market development “stemming from structural challenges introduced on by commerce shock that might set off a recession or perhaps a despair.”
Morgan Stanley analysts, led by Shawn Kim, expressed related sentiment in a word to buyers cited by Bloomberg: “The actual tariff influence on reminiscence resembles an iceberg, with most hazard unseen under the floor and nonetheless approaching.”
The analysts cautioned that earnings stories could be overshadowed by these bigger macroeconomic forces. Curiously, regardless of SK Hynix’s present benefit, Morgan Stanley nonetheless favours Samsung as their prime decide within the reminiscence sector.
“It could higher stand up to a macro slowdown, is priced at trough multiples, has optionality of future development by way of HBM, and is shopping for again shares every single day,” analysts wrote.
Samsung is scheduled to offer its full monetary assertion with web earnings and divisional breakdowns on April 30, after reporting preliminary working revenue of 6.6 trillion gained ($6 billion) on income of 79 trillion gained earlier this month.
The shift in aggressive positioning between the 2 South Korean reminiscence giants underscores how specialised AI parts are reshaping the semiconductor trade.
SK Hynix’s early and aggressive funding in HBM expertise has paid off, although Samsung’s appreciable sources make sure the rivalry will proceed.
For the broader expertise ecosystem, the change in DRAM market management indicators the rising significance of AI-specific {hardware} parts.
As information centres worldwide proceed increasing to assist increasingly-sophisticated AI fashions, AI reminiscence demand ought to stay sturdy regardless of potential macroeconomic headwinds.
(Picture credit score: SK Hynix)
See additionally: Samsung aims to boost on-device AI with LPDDR5X DRAM
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