Amid the global AI boom, there are forecasts suggesting that the revival of memory exports in South Korea could potentially boost the first-quarter performance of Samsung Electronics and SK Hynix.

According to Bloomberg Intelligence, a research institution under Bloomberg, Senior Analyst Masahiro Wakasugi recently explained in a report titled “Recovery in South Korean Memory Chip Exports” that South Korea’s DRAM exports maintained a growth trend compared to the same period last year for four consecutive months until February. Based on data from the Ministry of Trade, Industry and Energy, DRAM exports in February amounted to US$2.4 billion, showing a 90 percent increase compared to the same period last year and a 12 percent increase compared to the previous month.

Quoting data from market research firm Gartner, the report highlighted that in the third quarter of last year, the market share for DRAM based on bit supply was led by Samsung Electronics at 39 percent, followed by SK hynix at 34 percent and Micron at 23 percent. Considering the recovery trend in DRAM exports, the report predicted a strong rebound in the first-quarter revenue for South Korean companies.

Furthermore, last month, South Korea’s NAND flash exports saw a remarkable rebound, reaching a record level of US$890 million, marking an 82 percent increase compared to the same period last year and a 3 percent increase compared to the previous month. South Korean companies, including Samsung Electronics with a 35 percent market share and SK hynix with 18 percent based on price, dominate the NAND market share as of 2022.

Market research firm TrendForce forecasts that the average selling price (ASP) of NAND will continue to rise by 13 to 18 percent in the second quarter, following a 23 to 28 percent increase in the first quarter compared to the previous quarter. Consequently, the positive trend in revenue for South Korean companies in the NAND sector may continue.

With this trend, it is highly likely that Samsung Electronics’ preliminary results for the first quarter, which will be compiled on April 5, will show a rebound. According to financial information provider FnGuide, the consensus for Samsung Electronics’ operating profit in the first quarter of this year is 5.03 trillion won (US$3.71 billion). This represents a staggering increase of 685.7 percent compared to the same period last year when it was 640.2 billion won. It is anticipated that quarterly revenue will also recover to the 70 trillion won range for the first time in five quarters. The consensus for Samsung Electronics’ first-quarter revenue this year is 72.32 trillion won. Last year, revenue remained in the 60 trillion won range for all quarters.

The consensus for SK hynix’s operating profit in the first quarter of this year has also been revealed to be 1.37 trillion won. However, KB Securities has set its expectations even higher, predicting an operating profit of 2.1 trillion won. In the same period last year, SK hynix recorded an operating loss of 3.4 trillion won. However, it recorded an operating profit of 346 billion won in the fourth quarter of last year, marking the end of the operating losses that had persisted since the fourth quarter of 2022.