Samsung and SK Hynix Report Slower Memory Chip Price Growth

Samsung Electronics and SK Hynix reported memory chip pricing growth that lagged behind analyst expectations, suggesting a possible cooling in artificial intelligence demand. While both companies raised prices for DRAM and NAND, the increases did not meet the projections set by financial firms such as Goldman Sachs and Morningstar.

Samsung saw DRAM pricing rise by over 40%, while SK Hynix reported an increase of approximately 30%. These figures were lower than anticipated, partly due to slower-than-expected HBM4 shipments from SK Hynix. Analysts from Goldman Sachs Private Wealth Management lowered their price improvement expectations for SK Hynix to 19%, and Morningstar reported disappointment regarding Samsung's results.

The industry is seeing a shift toward long-term pricing agreements. While these contracts provide stability and hedge against downside risks, they may lower peak earnings and pull future demand forward, potentially leading to a prolonged earnings decline. This trend suggests that Micron Technology may also face pricing shortfalls when it reports its quarterly earnings next month.