Shares of Samsung Electronics climbed 0.71% on Thursday morning (11:32 AM GMT+9), extending a 20% rally since the beginning of the year, after the company posted record quarterly results driven by surging demand for memory chips used in AI servers.
Preliminary figures show operating profit soared to 20 trillion won ($13.8 billion) for the October-December period, marking a 208% increase and surpassing analysts’ forecasts. Revenue also reached a new high, with an increase of 23% year-over-year to 93 trillion won.
Major memory manufacturers such as Samsung have shifted production away from standard chips for everyday devices to focus on higher-margin components for artificial intelligence systems favored by companies like Nvidia. This move has contributed to a shortage in ordinary memory chips for laptops and servers, driving up prices for both DRAM and NAND.
Sanjeev Rana, head of research at CLSA Securities Korea, noted that hyperscalers and cloud operators are aggressively acquiring DRAM and are willing to pay premiums to secure supply.
According to Rana, average selling prices of DRAM climbed over 30% quarter-on-quarter in the December period, while NAND prices rose about 20%. He expects these elevated prices to be sustained into 2026, and possibly through the first half of 2027, citing persistent strong demand and tight supply.
Samsung’s stock has more than doubled in value through 2025 and has rallied further this month, fueled by optimism following an upbeat forecast from competitor Micron Technology. More than ten analysts have upgraded their price targets for Samsung within the past week, according to Bloomberg.
Demand for memory remains robust as innovation in areas such as humanoid robotics, autonomous vehicles, and AI-capable devices requires substantial DRAM and NAND.
Jeff Kim, head of research at KB Securities, noted that demand for the components remains far from a peak level, advising investors to buy the stock on any price dips following the company’s strong profit report.
Samsung’s full financial results are slated to be released on January 29, including net income and business segment details. At the CES trade show, executives highlighted ongoing supply challenges, with President Wonjin Lee noting higher prices for consumer electronics and looming semiconductor shortages.
Research firm Counterpoint projects DDR5 memory prices to rise 40% in the current quarter versus the previous three months, with an additional 20% increase expected in the next quarter.
