• SK Hynix captures 36% of the global DRAM market share, overtaking Samsung.
• Goes ahead on the strength of HBM demand for use in AI hardware.
• Analysts warn of headwinds from tariffs despite near-term AI server demand.

SK Hynix has officially dethroned Samsung Electronics as the global DRAM market leader for the first time in the companies’ history, riding the explosive demand for high-bandwidth memory (HBM) chips that power AI.

According to Counterpoint Research data, SK Hynix captured 36% of the DRAM market in Q1 2025, edging past Samsung’s 34% share in the market shift. The milestone marks the end of Samsung’s three-decade reign as the undisputed leader in DRAM manufacturing.

HBM leadership powers SK Hynix’s market dominance

The reversal follows SK Hynix’s earlier breakthrough in Q4 2024 when its operating profit surpassed Samsung’s for the first time.

“This is a milestone for SK Hynix which is successfully delivering on DRAM to a market that continues to show unfettered demand for HBM memory,” said Jeongku Choi, senior analyst at Counterpoint Research. “The manufacturing of specialised HBM DRAM chips has been notoriously tricky and those that got it right early have reaped dividends.”

SK Hynix’s strategic focus on high-bandwidth memory has proven particularly lucrative, with the company now commanding a dominant 70% share of the HBM market, according to Counterpoint’s report. HBM chips, which stack multiple DRAM dies to dramatically increase data processing capabilities, have become essential components for training AI models on hardware such as Nvidia’s graphics accelerators common in AI hardware racks.

“It’s another wake-up call for Samsung,” said MS Hwang, research director at Counterpoint Research in Seoul, as quoted by Bloomberg. Hwang noted that SK Hynix’s leadership in HBM chips likely contributed significantly to the company’s operating income during the period.

Financial outlook and Industry projections

The South Korean memory manufacturer is expected to post impressive financial results when it reports on Thursday (April 24 2025), with analysts projecting a 38% quarterly rise in sales and a 129% surge in operating profit for the March quarter. The leadership transition reflects broader shifts in the SAU industry as AI applications drive demand for specialised memory solutions.

Traditional DRAM, while still fundamental to computing devices, is being eclipsed in value by HBM chips designed to handle the data requirements of generative AI systems. Market research firm TrendForce forecasts SK Hynix will maintain its leadership position in 2025, holding over 50% of the HBM market in gigabit shipments. Meanwhile, Samsung’s share is expected to fall below 30%, with Micron Technology gaining ground to capture nearly 20% of the market.

Tariff concerns and long-term market risks

Despite the current boom, industry analysts warn of potential challenges on the horizon.

“The world is focused on the impact of tariffs, so the question is: What’s going to happen with HBM DRAM?” Hwang said. “At least in the short term, the segment is less likely to be affected by any trade shock as AI demand should remain strong. More significantly, the end product for HBM is AI servers, which – by definition – can be borderless.”

However, longer-term risks remain. Counterpoint Research sees potential threats to HBM DRAM market growth, stemming from structural challenges from trade shocks such as tariff policies. Morgan Stanley analysts, led by Shawn Kim, expressed concern in a note to investors cited by Bloomberg. “The real tariff impact on memory resembles an iceberg, with most danger unseen below the surface and still approaching.”

Analysts cautioned that earnings season results might be overshadowed by larger macroeconomic forces. Despite SK Hynix’s current advantage, Morgan Stanley still favours Samsung as its top pick in the memory sector. “It can better withstand a macro slowdown, is priced at trough multiples, has optionality of future growth via HBM, and is buying back shares every day,” the analysts wrote. Samsung is scheduled to provide its complete financial statement with net income and divisional breakdowns on April 30, after reporting a preliminary operating profit of 6.6 trillion won ($6 billion) on revenue of 79 trillion won earlier this month.

The shifting dynamics between the two South Korean giants highlight how specialised AI components are altering competitive positions in the semiconductor industry. SK Hynix’s early and aggressive investment in HBM technology is now paying dividends, though Samsung’s scale and resources ensure the rivalry will continue to evolve.

For the broader technology ecosystem, the DRAM market leadership change signals the importance of AI-specific hardware components at present. As data centres worldwide continue their build-out to support increasingly hungry AI models, demand for HBM DRAM is likely to remain robust, in spite of potential macroeconomic headwinds.