Micron Technology (NASDAQ:MU) saw its stock drop 3.9% in pre-market trading on Thursday after Goldman Sachs downgraded SK Hynix (KS:000660), a major competitor in the memory chip industry. This downgrade sent waves through the semiconductor sector.
Goldman Sachs analyst Giuni Lee lowered SK Hynix’s rating from Buy to Neutral, resulting in a 9% decline in the South Korean chipmaker’s shares. This shift raised concerns about the overall memory chip market, especially around pricing trends and competition in the high-bandwidth memory (HBM) segment, which is critical for artificial intelligence technologies.
The downgrade pointed to expected declines in HBM pricing for 2026, with Lee stating, “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.”
Lee also flagged doubts about SK Hynix’s operating profit forecast for next year, predicting a year-over-year drop compared to consensus projections that had anticipated 17% growth. Goldman’s 2026 operating profit estimate for SK Hynix now stands 19% below the consensus.
The negative outlook on SK Hynix has affected Micron, which operates in similar memory chip markets and is actively growing its position in HBM chips used in AI applications.
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