Samsung’s accounts for the second quarter have been published and the data is really bad. The South Korean company continues with operating losses weighed down, above all, by the memories. But this could change shortly, since, due to the artificial intelligencethere is an increase in demand for Samsung RAM.
For months Samsung, SK Hynix and Micron, mainly, have lowered the price of RAM memory chips. The reason is the low demand after the pandemic that has been combined with a large excess of stock. To control, the three would have (supposedly) agreed to a reduction in production and, consequently, an increase in prices.
Now the situation seems to be more normalized and no further downward price adjustments are expected. Rather, for the last quarter, a slight increase of no more than 5% is expected. It will be in 2024 when we will see a notable increase in the prices of RAM memory and, remember, also in SSDs.
Artificial intelligence to the rescue
There are fashions in technology, those of us who have spent years in this know it well. 3D printers, graphene, tablets and so many other products that have come and gone without saying a word. It seems that the new fashion is artificial intelligence.
It seems that AI will be the lifeline of many companies, as is the case of samsung. The company has highlighted in its presentation of accounts that the DRAM shipments have been higher than expected. Such demand comes from various artificial intelligence systems.
Strong demand for AI applications led to higher-than-guided DRAM shipments, resulting in performance improvement over the prior quarter in the memory business, which focused on HBM and DDR5 products
Indicate from Samsung
These statements go against what was said a few weeks ago by TSMC, the world’s largest chipmaker. The Taiwanese foundry revised its annual sales guidance this July. He has warned of cost challenges from lower demand for chips.
Meanwhile, IDC Research Director Nabila Popal has said:
Our conversations with channels, supply chain partners and major OEMs indicate that the recovery will be further delayed and the economy weaker in the second half of the year.
How will this affect us?
Well, very simple, if demand rises above production, we will see a rise in prices. Samsung, SK Hynix and Micron have recently cut production just looking to raise prices. The fact that there is a significant increase in demand may imply more demand than supply and, therefore, a rise in prices.
Before knowing these data, there was already talk of a price increase after the summer of 3-5%. Possibly, the increase in the price of RAM memory will remain unchanged until the end of the year. What is not ruled out is a marked rise for next year due to the demand for AI.
