Memory makers likely to see recovery in second half of 2025: Citi

Producers of dynamic random access memory, or DRAM, which includes Micron Technology (NASDAQ:MU), Samsung (OTCPK:SSNLF) and SK Hynix (OTCPK:HXSCF), should see recovery in the market during the second half of 2025, according to Citi Research.

The success of Apple (NASDAQ:AAPL) products and other computer hardware producers factor into the equation.

“Despite likely better-than feared 4Q DRAM pricing, we acknowledge the PC & mobile segment will continue to face weak pricing conditions in 1H25E,” said Citi analysts, led by Peter Lee, in an investor note. “However, we expect this to be short-lived, as we expect DRAM content per box to increase from 2Q25E onward, driven by an increase in content per box of Apple’s iPhone. We expect Apple’s Pro and Pro Max models to adopt 12GB LPDDR5T/LPDDR5X in 2Q25E (vs.8GB previously) to support Apple Intelligence and AI features.”

Samsung, SK Hynix and Micron are responsible for about 95% of all DRAM revenue. Samsung produces about 43%, SK Hynix 35% and Micron 20%.

Citi forecasts DRAM ASP to increase by 15% year over year in 2025.

“Our top pick is SK Hynix,” Lee noted. “Amid intensifying memory market decoupling, we expect SK Hynix to outperform peers in the premium memory market, backed by HBM3E leadership and HBM4 launch in 2H25E.”