Driven by the demand for artificial intelligence (AI), SK Hynix (000660) is on track to overtake Samsung Electronics as the world's largest DRAM supplier. According to Counterpoint Research, SK Hynix, a major supplier of high-bandwidth memory (HBM) for NVIDIA (NVDA), captured 36% of the DRAM market in the March quarter, while Samsung held 34%. This marks a significant shift, as Samsung has dominated the DRAM sector for over 30 years.
SK Hynix's leadership in HBM chips, crucial for AI model training, likely contributed to its improved operating profit. Analysts predict SK Hynix's sales grew by 38% and operating profit by 129% for the quarter ending March. The company is expected to release its latest financial results soon.
TrendForce forecasts that by 2025, SK Hynix will command more than half of the HBM market share, with Samsung's share dropping to just below 30%. However, the memory market faces challenges from U.S. tariffs, export restrictions to China, and recession concerns.
Despite these challenges, analysts see Samsung as a strong contender due to its resilience against macroeconomic slowdowns and ongoing stock buybacks. Samsung recently reported preliminary operating profits of 6.6 trillion won ($4.6 billion) and will release its full financial report at the end of April.
