In a rare occurrence within the two companies' long and intertwined history, Samsung Electronics and SK Hynix are scheduled to release their earnings reports on the same day, marking the latest confrontation in their high-stakes race for AI memory chips. The simultaneous earnings calls on Thursday are expected to highlight the surging demand for high-performance memory from AI servers and data centers. The calls are also anticipated to reflect soaring memory prices across the electronics industry, as chipmakers sacrifice capacity for traditional chips to focus on advanced memory production.
Once characterized by severe boom-and-bust cycles, the memory business is now generating profits that were almost unimaginable just a few years ago, thereby driving up valuations across the sector. Since early September, Samsung's stock price has surged approximately 130%, while SK Hynix's shares have roughly quadrupled. Timothy Moe, Chief Asia Pacific Equity Strategist at Goldman Sachs, stated that record supply deficits for DRAM and NAND are granting memory makers significant pricing power.
The current focus is on whether Samsung can overtake its smaller rival, SK Hynix, on the cutting edge of High Bandwidth Memory (HBM), a critical component for AI accelerators. Samsung aims to close the gap with its next-generation HBM4 product, which is planned for integration into Nvidia's upcoming flagship Rubin processor. The world's largest memory maker is close to securing certification from Nvidia for its latest version of AI memory chips.
SK Hynix will hold its earnings conference at 9 AM Seoul time on Thursday, followed by Samsung at 10 AM. According to an analysis of survey estimates from analysts, SK Hynix's operating profit for the last quarter is expected to have doubled, reaching a record 16.6 trillion won (approximately $115 billion). Revenue is projected to have grown over 50% to 31.1 trillion won, reflecting the company's dominance in the most advanced version of HBM3E, which is currently adopted by Nvidia and major cloud operators.
Samsung's semiconductor division is also expected to report strong results. Based on analysts' average forecast, the division's operating profit for the quarter is estimated to have risen to 10.85 trillion won. Earlier this month, the company's preliminary earnings already indicated signs of a recovery, suggesting its long-struggling memory business, plagued by weak prices and inventory gluts, has been revitalized.
Analysts Peter Lee, Jayden Oh, and Josh Yang from Citigroup wrote in a report that they expect the average selling price for DRAM to climb 120% this year, while the average selling price for NAND is projected to rise 90%. They raised their price targets for SK Hynix and Samsung by 56% and 20%, respectively. The broader market momentum helps Samsung defend its position as the industry leader.
For SK Hynix, the focus is on maintaining its leadership in the HBM field, an advantage built on years of investment that has set it apart in one of the industry's most profitable segments. Historically, SK Hynix long occupied the position of a "follower," deeply troubled by financial difficulties, heavy debt, and recurring restructuring cycles—technologically strong but particularly vulnerable during downturns.
However, the company's acquisition by the SK Group in 2012 allowed the chipmaker to make early bets on HBM, a market that Samsung initially considered too niche. That gamble has paid off as AI reshapes computing. The partnership with Nvidia has transformed SK Hynix from a cyclical laggard into a strategic hub of the AI supply chain, placing it on a more equal footing with Samsung.
The fact that both companies are reporting on the same day, according to Young Jae Lee, Senior Investment Manager at Pictet Asset Management, "draws market attention to the competition, which is heating up as the HBM4 era approaches."
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