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Goldman Downgrades SK Hynix to Neutral, Micron Shares Tumble Amid HBM Price Concerns
ByAinvest
Thursday, Jul 17, 2025 2:40 pm ET1min read
Micron Technology shares fell 4% after Goldman Sachs downgraded SK Hynix to Neutral from Buy, citing expected weakness in high-bandwidth memory pricing by 2026. Goldman analyst Giuni Lee flagged downside risks to SK Hynix's 2025 earnings and a 19% drop in operating profit in 2026, compared to market expectations. The negative sentiment swept Micron, which competes directly in HBM chips for AI systems.
July 02, 2025Micron Technology (NASDAQ:MU) shares fell 4% in pre-market trading Thursday, following a downgrade of SK Hynix (KRX:000660) to Neutral from Buy by Goldman Sachs analyst Giuni Lee. The downgrade, which cited expected weakness in high-bandwidth memory (HBM) pricing by 2026, triggered a 9% drop in SK Hynix's shares and had ripple effects across the semiconductor sector, including Micron [1].
Giuni Lee noted that HBM pricing could decline for the first time in 2026 due to increasing competition and shifting pricing power towards major customers. Lee also expressed concern about SK Hynix's operating profit outlook for 2025, projecting a year-over-year decline compared to consensus estimates of 17% growth. The firm's 2026 operating profit estimate now sits 19% below market expectations [1].
The negative sentiment towards SK Hynix spilled over to Micron, which competes in similar memory chip markets and has been expanding its presence in HBM chips for AI applications. The downgrade raised questions about demand and pricing in the sector, leading to a 3.9% decline in Micron's shares [1].
The memory chip market has been a key beneficiary of AI-related growth, but increasing competition and margin pressures are starting to cloud the outlook. Investors will be closely watching how both companies adapt to these challenges and manage costs in the evolving HBM market [2].
References:
[1] https://finance.yahoo.com/news/micron-stock-falls-goldman-downgrades-120501483.html
[2] https://www.asktraders.com/analysis/sk-hynix-stock-krx000660-down-10-after-goldman-sachs-cuts-rating-to-neutral/
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