Micron Technology Falls Amid Downgrade of SK Hynix by Goldman Sachs

Micron Technology (NASDAQ:MU) declined 4% on Thursday after its competitor SK Hynix (OTCPK:HXSCF) was downgraded to Neutral from Buy by Goldman Sachs. Goldman Sachs analysts expect high-bandwidth memory pricing to decline, citing increasing competition from other players. Micron's stock price dropped as investors became cautious about the company's future prospects.

Micron Technology (NASDAQ:MU) experienced a 4% drop in its stock price on Thursday following a downgrade of its competitor SK Hynix (OTCPK:HXSCF) by Goldman Sachs. The downgrade, from Buy to Neutral, was attributed to concerns about the future pricing of high-bandwidth memory (HBM) chips and the potential impact on SK Hynix’s operating profits.

Goldman Sachs analyst Giuni Lee cited potential HBM pricing declines in 2026 due to increasing competition and a shift in pricing power to major customers. The downgrade also noted a projected year-over-year decline in SK Hynix’s operating profit compared to consensus estimates, with the firm’s 2026 operating profit estimate now 19% below expectations.

The negative sentiment towards SK Hynix has spilled over to Micron, which competes in similar memory chip markets and has been expanding its presence in HBM chips for AI applications. Investors became cautious about Micron’s future prospects, leading to a decline in its stock price.

Despite the day’s downturn, Wall Street analysts maintain a generally positive long-term outlook. The consensus 1-year target estimate for MU is $147.53, suggesting potential upside from its current level. The consensus rating from analysts is a "Strong Buy."

Investors and traders are keenly awaiting Micron’s next earnings report, scheduled for September 24, 2025, which will provide crucial insights into the company’s performance and future guidance, especially regarding the high-demand markets for AI and data center memory solutions.

References:
[1] https://www.investing.com/news/stock-market-news/micron-stock-falls-after-goldman-downgrades-peer-sk-hynix-4139499
[2] https://seekingalpha.com/news/4468463-micron-declines-after-competitor-sk-hynix-receives-downgrade-by-goldman-sachs
[3] https://thekhabrilal.com/news/micron-technology-mu-stock-slides-in-early-trading-a-detailed-analysis-for-traders-302
[4] https://ca.finance.yahoo.com/news/micron-stock-falls-goldman-downgrades-120808094.html