[News] Is DRAM Winter Coming? Samsung, SK hynix Q4 Earnings Reportedly Lowered amid Weak Demand

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The DRAM winter seems to be around the corner. Following Micron’s clouded outlook, which suggests a roughly 9% quarter-over-quarter revenue decrease, a recent survey conducted by Yonhap News also downgraded the Q4 guidance for South Korean memory giants Samsung and SK hynix.

The survey, which gathered responses from 20 Korean brokerage firms, attributes this to the weakening industry demand, as per Yonhap News.

Samsung with a Sharp Profit Downgrade

The report notes that Samsung’ operating profit for the October-December period, 2024, is expected to fall to 8.58 trillion won (roughly USD 5.92 billion), which marks a decline of more than 1 trillion won from the previous estimate of 9.77 trillion won, the report adds.

Market analysts cited by the report attribute the prolonged weak profitability in Samsung’s core memory business to the ongoing slump in demand for traditional IT products, such as smartphones and PCs.

Samsung’s Q3 revenue reached 79.1 trillion won (approximately USD 57.35 billion), hitting an all-time high. However, its quarterly operating profit declined to 9.18 trillion, largely due to one-off costs. Now its Q4 profits are expected to continue trending downward.

SK hynix’s Q4 Earnings: Slightly Revised

On the other hand, SK hynix, leveraging its strength in next-gen HBM, seems to keep its momentum. As per Yonhap, its operating profit for the period is anticipated to be at 7.77 trillion won, marking a nearly 11% increase from the previous quarter.

However, this represents a roughly 4% decline compared to the 8.11 trillion-won forecast made in October and November, the report indicates, adding that the falling prices in general-purpose memory still has an effect.

The downgraded forecast echoes with Micron’s lackluster guidance for the current quarter, as it forecasts second-quarter revenue in FY25 of USD 7.9 billion, and adjusted EPS of USD 1.43. The guidance, as per Reuters, is below analyst estimates of USD 8.98 billion and USD 1.91, respectively.

According to TrendForce’s analysis, Micron’s outlook for the February quarter appears bleak, with ASP for traditional DRAM and NAND expected to decline further in 1Q25.

Read more

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(Photo credit: Samsung)