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SK Hynix Shares Decline Amid Analyst Cautiousness on Outlook
ByAinvest
Thursday, Jul 17, 2025 4:11 am ET1min read
SK Hynix shares fell 9.0% on Thursday, marking the steepest daily drop in over three months, as analysts turned cautious on the chip maker's outlook after a recent rally. Goldman Sachs downgraded SK Hynix to neutral from buy, citing fiercer competition and less favorable supply-demand conditions in the high-bandwidth-memory market next year. The firm raised its 2025 earnings-per-share forecast for SK Hynix by 7% but cut its 2026 and 2027 estimates by 9% and 4%, respectively.
SK Hynix shares fell 9.0% on Thursday, marking the steepest daily drop in over three months, as analysts turned cautious on the chip maker's outlook after a recent rally. Goldman Sachs downgraded SK Hynix to neutral from buy, citing fiercer competition and less favorable supply-demand conditions in the high-bandwidth-memory (HBM) market next year. The firm raised its 2025 earnings-per-share forecast for SK Hynix by 7% but cut its 2026 and 2027 estimates by 9% and 4%, respectively [1].The downgrade follows a similar move by Mirae Asset Securities Co., which projected market share gains for Samsung over the next two years. The shift in sentiment from a "Hynix long/Samsung short" stance to a more balanced view is evident, with some investors beginning to revise their preferences [1].
Meanwhile, the recent decision by the American government to lift export restrictions on Nvidia's AI chips to China is expected to benefit South Korean semiconductor leaders, including Samsung Electronics and SK Hynix. The H20 chip, equipped with advanced HBM3 and HBM3E memory, is likely to see increased demand, which could positively impact SK Hynix's HBM business [2].
While the short-term outlook for SK Hynix is positive due to the resumption of H20 chip exports, the long-term impact of rising competition and declining HBM pricing remains a significant concern. Investors will need to closely monitor the market share dynamics and pricing trends in the HBM segment to gauge the potential impact on SK Hynix's financial performance.
References:
[1] https://www.bloomberg.com/news/articles/2025-07-17/nvidia-supplier-sk-hynix-dips-as-goldman-sees-competition-rising
[2] https://economictimes.indiatimes.com/tech/technology/us-chip-policy-shift-boosts-outlook-for-samsung-sk-hynix/articleshow/122563231.cms
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