$SKHY

NetApp (NTAP) shares dropped 8.2% in pre-market trading despite beating Q1 earnings and revenue estimates. Other stocks moving lower include Ultragenyx (RARE), Methode Electronics (MEI), and Hewlett Packard Enterprise (HPE).

Micron Technology and SK Hynix shares have surged due to rising memory prices, driven by AI demand. Analysts expect Micron's earnings to peak at $170.70 per share in fiscal 2028. Both companies have signed long-term contracts, with SK Hynix securing $750 billion in deals, including $500 billion from Nvidia. The cycle may extend longer than anticipated due to structural shifts and AI demand.

Mizuho reiterated 'Outperform' ratings for memory stocks, including Micron (MU) and SanDisk (SNDK), citing undervaluation and long-term supply shortages. MU's price target was lowered to $1,300 (39.4% upside), while SNDK's target was adjusted to $1,875 (28% upside) with projected EPS growth. Bank of America also maintained a 'BUY' rating for SK Hynix (SKHY), expecting tight supply and stable ASPs.

SK Hynix (NASDAQ:SKHY) plans to start producing HBM4E chips in Indiana by Q3 2029, investing $4B. CEO Kwak Noh-Jung expects memory shortages to last until 2030. The project is supported by $458M in CHIPS Act grants. SK Hynix holds 58% of the HBM market, per Counterpoint Research. The stock is up 24.15% in a month, with a new $220 price target from Needham.

Nvidia (NVDA) reported Q2 2027 revenue up 106% YoY, with data center sales rising 117%. However, gross margins are expected to drop from 75% to 71-72% in Q4 due to rising memory costs. Nvidia's CFO attributed this to supply constraints from memory suppliers Micron (MU), Samsung, and SK Hynix, which are benefiting from increased demand. Nvidia expects margins to recover in fiscal 2028 as price increases take effect.

Micron (MU) fell 3% and Western Digital (WDC) dropped 4% despite NVIDIA's (NVDA) $279B memory commitment, while SK Hynix (SKHY) gained 1%. The Roundhill Memory ETF (DRAM) declined 0.9% to $55.87, contrasting with a 1% rise in the iShares Semiconductor ETF (SOXX). NVIDIA's CFO attributed the increased commitments to memory procurement for next-gen platforms, with SK Hynix being the sole gainer in the group.

Nvidia secured $279 billion in multi-year memory purchase commitments, a 135% increase, to ensure supply for AI demand. This move may pressure competitors like AMD, which saw a 1.87% share drop. Memory makers like SK Hynix and Samsung gained, while Micron fell despite a recent rally. Nvidia's Q4 gross margin guidance is 71-72%, reflecting higher memory costs.

SK Hynix published a roadmap for AI architecture using optical links to connect processors and memory, expanding opportunities for Coherent Corp. Coherent supplies components like optical transceivers and lasers, positioning it for growth in AI data centers. SK Hynix also announced a $28.7B share repurchase program, reflecting strong cash flow from its high-bandwidth memory business.

SK hynix (SKHY) announced a $28.6B share buyback program, repurchasing up to 3.3% of outstanding shares. The company aims to return over 50% of free cash flow from 2025-2027. SKHY's shares initially rose 4% but closed with a modest gain. The move follows strong Q2 results, with revenue up 257% and operating profit up 557%.

SK Hynix (SKHY) and Samsung Electronics (SSNLF) shares fell in Seoul and U.S. markets, with SK Hynix dropping 5% and Samsung declining 3%, amid reports of U.S. pressure on Korean chipmakers to invest in American facilities. The KOSPI index also dropped 2.66%. The U.S. reportedly wants Korean companies to invest in U.S. memory-chip production to ensure stable supplies, following Seoul's KRW 800 trillion Honam Semiconductor Mega Project announcement.