Samsung SK Hynix 2026 Outlook: Beyond HBM to AI Inference

Why the surge in legacy DRAM prices and earnings revisions
are driving a strong buy for Korean chipmakers.

---

The narrative surrounding the Korean semiconductor sector is evolving. Throughout 2024 and 2025, the market’s enthusiasm was mostly on HBM (High Bandwidth Memory) for AI training.

While HBM remains a critical growth engine, a new and perhaps more powerful catalyst has emerged in 2026: The AI Inference Market.

Investors are witnessing a rapid upward revision in earnings forecasts for Samsung Electronics (005930.KS) and SK Hynix (000660.KS). Here is an analysis of why the market is re-rating these tech giants.

1. The Shift: From Training to Inference

The AI revolution happens in two stages: Training (teaching the AI) and Inference (using the AI).
While training requires massive computational power and HBM, inference requires massive memory capacity.

As AI services (like ChatGPT, Copilot, and Sora) are deployed to billions of users, data centers need vast amounts of standard high-performance memory, specifically DDR5.

• The Fact: As demand shifts to inference, the consumption of general DRAM is skyrocketing. This is absorbing the supply glut and driving up spot prices for legacy chips, which account for the bulk of revenue for Samsung and SK Hynix.
  

2. The Price Rally: A Rising Tide Lifts All Boats

The surge in HBM production has created a unique supply-side effect.
Because HBM requires a larger die size than standard DRAM, manufacturing HBM eats up significant wafer capacity.

• Capacity Squeeze: With production lines focused on HBM, the supply of standard DDR5 has tightened.
  
• Price Impact: This “squeeze” coupled with the inference boom has led to a sharp rise in Average Selling Prices (ASP) for commodity DRAM. This is pure profit margin expansion for Korean chipmakers.
  

3. Earnings Surprise & Upward Revisions

The market reacts fastest to earnings revisions. Currently, securities firms and global investment banks are scrambling to raise their target prices and operating profit estimates for both companies.

• SK Hynix: Continuing its dominance in HBM3E, SK Hynix is now seeing its profitability maximize as its legacy DRAM business turns into a cash cow.
  
• Samsung Electronics: As the world’s largest memory maker, Samsung benefits most from the volume recovery in general DRAM. The “Operating Leverage” effect is kicking in—where a small increase in price leads to a massive jump in profit.

4. Conclusion: Is it too late to buy?

The stock prices of Samsung Electronics and SK Hynix are reacting aggressively to these “Earnings Surprises.” However, considering we are entering the expansion phase of the AI inference cycle, current valuations still look attractive compared to historical peaks.

If entering at current levels feels burdensome, accumulating shares during short-term corrections (pullbacks) could be a prudent strategy.

For global investors looking for exposure to the AI hardware supply chain beyond NVIDIA, the Korean memory sector offers a compelling mix of growth (HBM) and cyclical recovery (DDR5).

---

Disclaimer: The content provided on sharonresearch is for informational purposes only and does not constitute financial advice. Investment involves risk, including the loss of principal.