Micron, SK Hynix stocks fall as Chinese memory maker announces progress in new design

Goldman Sachs identified SanDisk, SK Hynix, and Samsung Electronics as potential beneficiaries of high-performance memory chips like High-Bandwidth Flash (HBF) for AI, estimating a $40B-$150B market by 2030. Analyst James Schneider expects HBF to reduce AI inference costs by 30%, saving cloud providers hundreds of billions in capital spending. Goldman rates SanDisk, SK Hynix, and Samsung as Buy, while Micron is rated Neutral.

US memory stocks fell in pre-market trading, with Micron (MU), SanDisk (SNDK), Western Digital (WDC), and Seagate (STX) dropping over 2% and 1%, respectively, due to competition concerns from ChangXin Memory Technologies' (CXMT) R&D progress in DRAM technology. CXMT's advancements may impact global memory industry dynamics and pricing. The Roundhill Memory ETF declined 7.4% last week, its worst performance in nearly three months.

Iren shares rose 5% after signing a multi-year AI cloud services deal with Anthropic, according to The Information. CCC Intelligent Solutions shares surged 9.5% on reports of a potential buyout by GTCR and Elliott Investment Management. Stellantis shares climbed following EU-China talks on hybrid car exports. Micron Technology shares fell 2.1% due to competition and union demands. GoDaddy shares declined after a downgrade by RBC Capital Markets.

Micron Technology (MU) shares fell 2.2% in pre-market trading to $1,006.20 after ChangXin Memory Technologies reported progress in DRAM design, intensifying competition. Labor demands in Taiwan, where 80% of Micron's Taiwan workforce is based, also pressured shares. The Nasdaq saw slight declines, and semiconductor sector faced headwinds. Micron's stock remains above its 52-week low of $186.25.

South Korea's KOSPI index, previously the best-performing major index, has lost nearly half its gains in the second half due to record foreign net selling of 227.6 trillion won. Despite strong fundamentals, including record earnings from Samsung Electronics and SK hynix, foreign investors are questioning the sustainability of chip profits and AI-driven growth. The KOSPI closed down 3.65% on Monday, its steepest daily decline since September 2.

KEPCO President Kim Dong-cheol stated that KEPCO will cover 20% of the 1.4 trillion won cost for the first phase of the Honam semiconductor cluster's power grid, with Samsung and SK Hynix covering the remaining 80%. The cost-sharing is based on electricity usage ratios, as no government support is expected. KEPCO aims to reduce its bond-to-equity ratio to 2 times by 2027.