Rising DRAM Prices Anticipated as Samsung and SK Hynix Commit to Long-Term Contracts

The current strategy of locking in DRAM prices by major companies raises intriguing questions. Why, when there appears to be potential for significant price increases, would these companies choose to secure today’s prices?

To be honest, the fact that they are only signing new LTAs is somewhat concerning to me. Because that essentially suggests that memory companies do not expect memory prices to rise much further from here. Think about it. If prices were going to keep rising, would they really… https://t.co/t808usMHs3

— Jukan (@jukan05) April 8, 2026

This trend might imply that we are nearing the peak for DRAM prices. If these manufacturers were confident in future price hikes, it would be logical for them to avoid committing to current rates.

In recent developments, Samsung announced a staggering 30% increase in its DRAM prices for the second quarter of 2026, building on a 100% year-over-year increase in the first quarter. Observers are now eager to see if further price adjustments will occur in Q3, which could lend credence to this emerging narrative.

UBS: On the timing of the NAND price peak “For NAND specifically, we now model industry pricing to peak in CQ3:27 (vs. CQ2:27 prior) based on our view that YMTC is now allocating a significant portion of its incremental capacity towards DRAM rather than NAND – roughly 30k-wpm…

— Jukan (@jukan05) April 9, 2026

While the DRAM market seems to be stabilizing, NAND pricing is projected to peak later, specifically in the third quarter of 2027, according to UBS forecasts.

Two key drivers may enhance NAND prices moving forward. First, the recent introduction of Google’s TurboQuant, which affects DRAM pricing, does not alter the demand for NAND. Consequently, NAND’s market position remains intact.

Secondly, major manufacturers in China, especially YMTC, are reallocating some of their production from NAND to DRAM, resulting in a tighter supply for NAND products.

Furthermore, analysts at KB Securities predict that Samsung’s operating profit will reach 327 trillion won in 2026, soaring to an astonishing 488 trillion won in 2027, setting it up to become the world’s most profitable company. This remarkable trajectory is not a product of poor decision-making; rather, it underscores the importance of closely monitoring Samsung’s DRAM pricing patterns in Q3 to validate emerging market trends.

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