The global memory chip market is experiencing a rare super cycle. Driven by strong HBM sales and a sharp surge in DRAM and NAND prices, Samsung Electronics and SK Hynix are both projected to report record-high operating profits for the first quarter, with figures nearly doubling previous records.

According to TrendForce data, first-quarter contract prices for DRAM and NAND Flash increased by 90-95% and 55-60% quarter-on-quarter, respectively. The upward trend is expected to continue into the second quarter.

Based on forecasts from sell-side institutions, Samsung Electronics' Q1 operating profit is estimated to reach 40-45 trillion Korean won, while SK Hynix is expected to report 36-39 trillion won. Both companies set their previous quarterly operating profit records in the last quarter of the previous year. If the sell-side predictions are accurate, the new records will be approximately double the old highs.

Globally, only a handful of corporations operate at this scale, including Nvidia, Apple, Alphabet, Microsoft, and Saudi Aramco.

Samsung Electronics will release its earnings guidance on April 7 (Korean time). SK Hynix's earnings conference call is scheduled for April 23, and Samsung's will be held on April 30.

**Steep Price Increases: DRAM Contract Prices Nearly Double in a Single Quarter** The dramatic rise in memory chip prices is the direct driver behind the profit surge.

TrendForce data indicates Q1 DRAM and NAND Flash contract prices rose 90-95% and 55-60% compared to the previous quarter. More notably, TrendForce predicts the upward momentum will persist in Q2, with DRAM contract prices expected to increase by another 58-63% and NAND Flash by 70-75%.

This trend was foreshadowed in Micron's recent earnings report. Its revenue for the second quarter of fiscal 2026 reached $23.86 billion, exceeding the company's own guidance of $18.7 billion by 27%. Non-GAAP operating profit was $16.5 billion, surpassing guidance expectations by approximately 46%.

**Supply Bottlenecks: New Capacity Earliest by Late 2027** Structural tightness on the supply side is the fundamental reason behind the current price hikes. Industry expectations suggest that new cleanroom capacity currently under construction will not become effective supply until late 2027 or 2028 at the earliest.

In this context, AI cloud service providers are actively signing five-year long-term purchase agreements with memory manufacturers to secure supply. Widespread shortages in the broader memory market are expected to continue.

Industry insiders note that key medium to long-term variables for the memory sector include whether storage efficiency technologies can effectively reduce server procurement volumes and whether cloud data center companies can maintain their current capital expenditure pace.

IDC analyst Jitesh Ubrani also stated, "The memory shortage will last until 2027. Even if prices soften starting in 2028, they will not return to 2025 levels."

**Downstream Pressure: Smartphone Shipments Forecast to Drop Over 12%** The cost of soaring prices is being borne by the downstream consumer electronics industry.

IDC predicts that global smartphone shipments will decline by 12.9% this year, and PC shipments will fall by 11.3%, describing the impact as "tsunami-level," partly due to memory cost pressures.

Memory prices have risen to such an extent that OEMs are proactively downgrading product specifications or even completely discontinuing entry-level product lines. Display panel manufacturers have reportedly also lowered their annual shipment targets as a result.

For major memory chip makers, the flip side of record profits is the accumulating pressure on their customers. As the supply-demand imbalance extends through the industrial chain, the structural impact of this memory super cycle on the overall consumer electronics market may become a risk variable requiring ongoing investor attention.