AI demand continues to support, after doubling in Q1, Samsung's Q2 DRAM prices will rise by another 30%.

Samsung Electronics has significantly raised DRAM prices for two consecutive quarters, reflecting the deep reshaping of the storage chip market by the hot investment trend in AI infrastructure. According to South Korea's Electronic News, Samsung Electronics has completed negotiations with major customers on DRAM supply prices for the second quarter and signed supply contracts, with an increase of about 30% from the first quarter prices. This price increase covers high-bandwidth memory (HBM) as well as general DRAM products for servers, PCs, mobile devices, and represents an average comprehensive increase. Previously, Samsung had raised the average DRAM price by about 100% in the first quarter. An industry insider familiar with the matter stated, "Many customers are still competing to lock in DRAM supply early, allowing the company to further raise prices for supply based on the first quarter," and pointed out that "there are no signs of price stabilization or decline at the moment, with AI demand as the core." Based on this calculation, after two rounds of price increases, the second-quarter supply price is now equivalent to 2.6 times the benchmark price at the beginning of 2025. The market's judgment of "today's cheapest" has not changed, but the rate of price increases has slowed down - the second-quarter increase is significantly lower than the doubling trend seen in the first quarter. The supply and demand dynamics in the third quarter will be a key variable in determining the direction of DRAM prices. Root of the price increase: HBM expansion squeezes general DRAM supply The continuous rise in DRAM prices in this round is directly driven by the explosive growth in demand for AI accelerators. As large tech companies accelerate the construction of AI server infrastructure, the demand for HBM has rapidly increased. Major storage manufacturers like Samsung Electronics are shifting production capacity towards HBM, causing a tightening supply of general DRAM, leading to a significant price increase. Another industry insider stated, "The willingness of large tech companies to expand AI server infrastructure has not changed, and the demand for high-performance DRAM and HBM remains strong," adding that "competition for long-term contracts to secure DRAM supply is becoming increasingly fierce." Clear differentiation between high-end and older products The price increase trend is not uniform. Data from the market research firm DRAM Exchange in Taiwan shows that as of the end of March, the average fixed trading price of PC DRAM products (DDR4 8Gb) remained the same as the previous month, and the price increase for some older products has entered a phase of temporary stability. However, prices for new generations of DRAM such as DDR5 and server storage products continue to rise steadily, with strong demand for high-end products in the market. It is widely believed in the industry that the price increase cycle for high-spec products is not yet over. SK Hynix and Micron (MU.US) expected to follow suit with price increases in sync As the world's largest DRAM manufacturer, Samsung Electronics has set a 30% price increase, which is expected to have a ripple effect on the entire industry. Reports indicate that SK Hynix and Micron are also expected to push forward with DRAM supplies in the second quarter at similar levels, and have engaged in detailed negotiations with customers on price increases and contract terms. The synchronization of the three major storage manufacturers signals that the downstream buyers will face increased pressure from price hikes, with negotiating space narrowing. The biggest uncertainty in the market currently focuses on the third quarter. DRAM production capacity for Samsung Electronics and other major storage manufacturers has not seen a significant increase, indicating that AI-driven demand will continue to be a key factor influencing price trends. If AI infrastructure investment maintains its current strength and supply expansion lags behind, the upward price trend is expected to continue; however, if demand begins to weaken marginally, the price increase cycle may face a test. This article was reprinted from "Wall Street News," authored by Xu Chao; GMTEight Editor: Huang Xiaodong.