Samsung profit up 755% year over year! Rumors say DRAM prices may rise another 100%, and 32 GB memory could push past $400

Benefiting from a surge in memory demand driven by AI and rising chip prices, Samsung Electronics’ profits this year have seen explosive growth in the first quarter. According to coverage by Korean media, in the first quarter of 2026, operating profit reached 57.2 trillion won (about $38 billion), up 755% year over year—far exceeding market expectations.

On the revenue side, revenue for the same period came in at 133 trillion won, up 68% year over year, also outperforming market consensus. Based on forecasts previously compiled by the financial data firm FnGuide, the market had originally expected Samsung’s first-quarter operating profit to be about 40.2 trillion won and revenue to be about 119 trillion won; this time, the released figures “materially surpassed” expectations across the board.

Demand from data centers for high-bandwidth memory (HBM) and server DRAM has surged sharply, displacing capacity that previously served the PC, consumer electronics, and GPU industry supply chain. Because wafer capacity cannot be expanded quickly in the short term, tight supply further pushes prices higher. Market reports say Samsung’s latest DRAM quotes have risen by more than 100%, far above the 70% increase in January. With capacity being squeezed, consumer 32 GB memory could break $400.

Samsung’s earnings beat expectations, with 2026 Q1 profit up 755% year over year

This earnings surge is mainly driven by a spike in memory demand brought on by the AI wave. As generative AI, data centers, and high-performance computing (HPC) continue to expand, DRAM and NAND Flash prices have been gradually recovering since the second half of 2025, and accelerated further upward at the beginning of 2026, becoming the core catalyst driving Samsung’s profits.

It is worth noting that Samsung has only released preliminary consolidated financial results this time; it has not yet disclosed the detailed contributions of each business group (such as semiconductors, mobile communications, displays, etc.). The full financial report is expected to be released later this month. The market broadly expects that the semiconductor division will be the biggest profit contributor this quarter, especially high-bandwidth memory (HBM) and server DRAM, which have become key components in the AI infrastructure race.

Market news: Samsung’s latest DRAM quote increases of more than 100%

On the other hand, market reports say Samsung Electronics has completed DRAM supply price negotiations with customers in the first quarter of 2026, with the increase exceeding 100%, far higher than the roughly 70% price hike in January. As one of the world’s top three DRAM manufacturers, Samsung’s pricing strategy often serves as a bellwether; another major vendor, SK Hynix, has recently also reportedly raised prices in parallel, suggesting that the memory market has entered a full-scale upcycle.

The core driver of the price surge comes from a breakout in demand for AI servers. As large language models and high-performance computing (HPC) continue to expand, data centers’ demand for high-bandwidth memory (HBM) and server DRAM has risen sharply, displacing capacity previously allocated to the PC, consumer electronics, and GPU industry supply chains. Because wafer capacity cannot be expanded quickly in the short term, tight supply further pushes prices higher.

How drastic has the change been in memory supply and demand? In the past, DRAM supply was mainly based on annual contracts, but amid severe price fluctuations, manufacturers have shifted to quarterly contracts, and even begun evaluating a move to “monthly pricing” to reflect market supply and demand more immediately. This means price volatility will occur even more frequently, and market uncertainty will rise significantly.

With supply-and-demand gaps likely difficult to fill in the short term, industry consensus is that memory prices still have room to rise. For consumers, this means PC memory, graphics card, and storage device prices may continue climbing, and even scenarios may emerge where high-end 32GB (16GB*2) memory modules break $400.

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