Memory Chips Exceed Half of Semiconductor Revenue: Susquehanna Report

According to a new analysis released by Susquehanna Financial Group, the memory chip sector has reached a historic milestone, accounting for more than 50% of total revenue in the semiconductor industry. This indicates that memory products have become the largest revenue source in the sector, positioning 'memory as the new king.' Analysts note that this shift is directly linked to the surge in demand for artificial intelligence and data centers. The report emphasizes that rising memory prices and demand for advanced products such as high-bandwidth memory (HBM) have permanently altered the industry's revenue structure. In particular, the increase in unit prices of memory modules used in servers and AI processors played a critical role in pushing the share of total semiconductor revenue past the 50% threshold. This ratio is recorded as the highest level in recent decades. According to Susquehanna's assessment, memory manufacturers are keeping supply in check by being cautious about capacity expansion. This strategy ensures prices remain at elevated levels while positively impacting the sector's profitability ratios. However, analysts point out that this situation also brings cyclical risks, as the memory market has historically been sensitive to supply-demand imbalances. Experts state that this strong performance in the memory segment is reshaping the overall growth dynamics of the semiconductor industry. If cloud computing and AI infrastructure investments continue, memory chips are expected to maintain their revenue dominance in the coming quarters. However, macroeconomic uncertainties and technological transitions could pose downside risks to these projections. This is not investment advice.