Shares in Samsung Electronics (KS:005930) surged to a fresh record high on Thursday after a domestic report said its next-generation high-bandwidth memory (HBM) chips were commanding substantially higher supply prices. The move underlines growing investor confidence in the memory cycle as artificial intelligence workloads push demand for advanced memory solutions.
According to the report, which cited industry contacts, Samsung is negotiating sale prices for HBM4 units at about $700 apiece, a rise of roughly 20%–30% compared with its previous HBM3E product. The pricing conversation appears to have been a catalyst for market activity: Seoul-listed Samsung stock climbed as much as 5.4% to a record 190,900 won by 06:16 GMT.
The report also said SK Hynix (KS:000660), which is preparing to begin mass production of HBM4, is likely to set comparable price levels. Both companies stand to benefit from a combination of constrained global memory supply and robust demand driven by AI applications, where HBM is a key component for advanced processors used by firms such as Nvidia.
Higher realized prices for both HBM and conventional DRAM are lifting chipmakers' pricing power and prospects for margin improvement. Broker estimates referenced in the report project first-quarter operating profit of about 32 trillion won (roughly $24 billion) for Samsung and in excess of 28 trillion won for SK Hynix, figures that could translate into record quarterly earnings if realized.
The report noted that Samsung began mass production of HBM4 earlier this month, placing the company to capitalise on what industry contacts described as an AI-driven memory boom expected to persist through 2026. The combination of new product ramp-up and elevated pricing has been enough to prompt a notable re-rating of semiconductor equities in Seoul.
Context and market implications
Higher per-unit pricing for HBM4 strengthens near-term revenue and margin visibility for Samsung and, likely, SK Hynix. For investors and supply-chain stakeholders, the development suggests stronger cash-flow potential from memory operations if the pricing holds and production ramps proceed as reported.
What remains to be clarified
The report reflects industry source information about ongoing negotiations and expected pricing and production plans. It does not provide details on contract terms, volumes, or the timing of customer ramp schedules beyond the note that Samsung began mass production of HBM4 earlier this month.