Latest news with #SKHynix
Yahoo
2 days ago
- Business
- Yahoo
Micron Shares Tumble as Goldman Warns of HBM Price Trouble Ahead
July 17 - Micron Technology (NASDAQ:MU) shares fell nearly 4% on Thursday morning, tracking a broader dip in the memory chip sector after Goldman Sachs downgraded South Korea's SK Hynix. Warning! GuruFocus has detected 7 Warning Sign with MU. Goldman analyst Giuni Lee cut the rating on SK Hynix to Neutral from Buy, citing expected weakness in high-bandwidth memory (HBM) pricing by 2026. Shares of the chipmaker slid about 9% following the move. The analyst noted that pricing power is beginning to shift toward large customers, where SK Hynix has significant exposure. Lee also flagged downside risks to the company's 2025 earnings, forecasting a drop in operating profit, in contrast to consensus estimates calling for 17% growth. Goldman's revised forecast for SK Hynix's 2026 operating profit now stands 19% below market expectations, adding to investor unease. Micron, which competes directly in HBM chips for AI systems, was swept up in the negative sentiment as the downgrade raised questions about demand and pricing in the sector. 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, analysts say. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Nvidia Supplier SK Hynix Dips as Goldman Sees Competition Rising
(Bloomberg) — SK Hynix Inc ( shares declined Thursday after Goldman Sachs Group Inc. downgraded the Korean chipmaker for the first time in over three years, on expectations it may suffer as competitors make advances. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The stock slid as much as 8.8%, the most since April 7, after analysts led by Giuni Lee lowered their rating to neutral from buy. Meanwhile, shares of larger rival Samsung Electronics Co. ( rose 2.3%. As the key supplier of high-bandwidth memory to Nvidia Corp. (NVDA), SK Hynix has seen its shares soar in the past couple years on voracious investor appetite for anything linked to artificial intelligence. While Samsung has lagged in getting its HBM chips approved by Nvidia, observers are watching for signs of a catch-up that would dent SK Hynix's lucrative advantage. 'We believe HBM pricing could decline for the first time in 2026, with increasing competition and pricing power gradually shifting to the major customer where Hynix has an outsized exposure,' the Goldman analysts wrote in a note. While the AI theme has shown a resurgence of late, helping Nvidia become the first company to reach a market value of $4 trillion, the market is alert to signs of any trouble. The decline in SK Hynix shares got extra momentum from a slide in global chip stocks following a cautious outlook from ASML Holding NV (ASML), another key company in the Nvidia supply chain. The Goldman analysts said SK Hynix's share price has continued to 'substantially' outperform the market despite growing risks. The stock is up 57% so far this year, outpacing Samsung's 23% gain. 'For several years, foreign investors have largely maintained a 'Hynix long/Samsung short' stance within the semis sector, however, it seems sentiment is shifting,' said Cho Junkee, an analyst at SK Securities Co. in Seoul. 'Samsung is now being picked up, and some are beginning to revise their preferences.' Goldman's rating cut follows a downgrade earlier this week by Mirae Asset Securities Co., which said SK Hynix's HBM market share may begin to slip after next-generation chips begin shipping next year. In a separate report, Mirae analyst Young-gun Kim projected market share gains for Samsung over 2026-27. —With assistance from Jeanny Yu. How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI How Hims Became the King of Knockoff Weight-Loss Drugs The Quest for a Hangover-Free Buzz Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
3 days ago
- Business
- Bloomberg
Nvidia Supplier SK Hynix Dips as Goldman Sees Competition Rising
SK Hynix Inc. shares declined Thursday after Goldman Sachs Group Inc. downgraded the Korean chipmaker for the first time in over three years, on expectations it may suffer as competitors make advances. The stock slid as much as 8.8%, the most since April 7, after analysts led by Giuni Lee lowered their rating to neutral from buy. Meanwhile, shares of larger rival Samsung Electronics Co. rose 2.3%.
Time of India
3 days ago
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK Hynix
Seoul: The recent decision by the United States to lift restrictions on Nvidia's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK Hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Herald. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to China. The move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology. "We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" chip. In April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a USD 4.5 billion charge and a USD 2.5 billion drop in quarterly revenue. Now that exports are back on track, demand for HBM chips--which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM--is expected to rebound. Samsung and SK Hynix, key HBM suppliers to Nvidia, are likely to see a positive impact. The H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid growth. Samsung has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9 per cent drop in Samsung's operating profit year-over-year for the second quarter. Meanwhile, SK Hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports. "It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK Hynix is expected to benefit in the near term from the resumption of H20 shipments."
Business Recorder
3 days ago
- Business
- Business Recorder
South Korean shares track Wall Street lower after US inflation data
SEOUL: Round-up of South Korean financial markets: South Korean shares fell on Wednesday, tracking Wall Street's losses on U.S. inflation data. The won strengthened, while the benchmark bond yield rose. The benchmark KOSPI was down 18.13 points, or 0.56%, at 3,197.15 as of 0147 GMT, after hitting a near four-year high on Tuesday. U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September. South Korea's finance minister nominee said he would bring regulatory improvements to the foreign exchange market, according to a media report. Among index heavyweights, chipmaker Samsung Electronics rose 0.63%, but peer SK Hynix lost 1.51%. Battery maker LG Energy Solution slid 1.18%. Hyundai Motor and sister automaker Kia Corp were down 0.83% and 0.60%, respectively. Steelmaker POSCO Holdings shed 2.73%, while drugmaker Samsung BioLogics fell 0.19%. South Korean shares close at near four-year high as Samsung Electronics jumps Of the total 932 traded issues, 224 shares advanced, while 664 declined. Foreigners were net sellers of shares worth 280.0 billion won ($201.95 million). The won was quoted at 1,386.3 per dollar on the onshore settlement platform, 0.14% higher than its previous close at 1,388.2. In money and debt markets, September futures on three-year treasury bonds lost 0.03 point to 107.15. The most liquid three-year Korean treasury bond yield rose 0.9 basis point to 2.472%, while the benchmark 10-year yield rose 2.0 bps to 2.895%.
