After years of battling inventory levels and consumer demand, Samsung's DRAM division is finally seeing the light of day, and they are on track to be profitable in their overall revenue.
Samsung's efforts to aggressively cut production and raise the bar in the DRAM space have finally paid off, and analysts expect an upturn.
The DRAM industry, especially the demand related to consumer memory and storage, has been declining in recent years.
This is mainly due to the fact that inventory levels in the post-COVID era are at an all-time high, but the sharp drop in consumer demand has caused huge problems for DRAM companies such as Samsung.
By taking strong inventory correction measures, the South Korean giant finally posted a monthly earnings surplus, which bodes well for a possible turnaround.
Samsung Electronics' DRAM and NAND sales have entered"Positive"and may be profitable for the first time in recent years.
Considering that they have been implementing massive production cuts, the company expects a turnaround.
We haven't received profit numbers from the company yet, but it's really good news for the DRAM industry, and if this trend continues, we could see a future earnings quarter, which is quite positive for the industry as a whole.
It seems that the bad days in the DRAM and NAND space are finally over, and we may see sustainable growth as the AI boom comes in.
However, this also means that consumers are likely to see a surge in DRAM products in the future, and as has been highlighted many times before, the cost of purchasing storage and memory could become higher if the pace of inventory adjustments remains the same.