Memory chip leader makes a triumphant return: $MU $SNDK $SKHYNIX U.S. shares surge at the open as Goldman’s bullish call ignites a sector rebound
On the evening of October 15 Beijing time, SK Hynix shares surged shortly after the U.S. market opened, rising more than 5% at one point to $184.37 and reaching a market capitalization of $1.31 trillion, leading the memory chip sector. The Philadelphia Semiconductor Index gained 1.55%, while chip stocks including ARM and AMD also advanced.
Just days earlier, SK Hynix had come under heavy selling pressure. Concerns over the expansion of AI infrastructure weighed on the market: CoreWeave plunged 6%, SK Hynix fell more than 7% at one point, and South Korea’s KOSPI dropped 7.6%, with the stock sliding to 1.257 million won. But within just a few days, the stock surged 30% in South Korea to hit its upper price limit. Its ADR rose nearly 8% in overnight trading, while a Hong Kong-listed 2x leveraged product jumped as much as 70%, staging a dramatic comeback.
The main catalyst for this rally was Goldman Sachs turning bullish on the memory sector. Goldman said Micron and SanDisk had broken out of their summer downtrends, while hedge funds had previously been substantially underweight. If technical conditions improve, there is ample room for them to re-enter the market, shifting the direction of the “pain trade” upward. Micron and SanDisk rose in response, and memory ETFs outperformed the broader market.
Fundamentals are also providing support. AI data centers are driving a supercycle in memory, and Samsung’s third-quarter operating profit soared 782.5% year over year, surpassing 100 trillion won for the first time. Forecasts for DRAM price increases have been raised to 10%–20%. HBM4 is in short supply, and the supply-demand gap could persist through 2027. As a leader in HBM, SK Hynix is one of the biggest beneficiaries of surging demand for AI memory.
However, concerns remain. Kioxia’s CEO said NAND prices had risen enough and should not be raised sharply further. Goldman also cautioned that memory prices and capacity could reverse quickly, making Micron’s results a key test. Overall, SK Hynix’s sharp rally reflects both improving sentiment and strength in the AI memory market, but cyclical risks remain a concern in the second half of the memory supercycle. #SKHy #SNDK #Musk's #SKHYNIX
On the evening of October 15 Beijing time, SK Hynix shares surged shortly after the U.S. market opened, rising more than 5% at one point to $184.37 and reaching a market capitalization of $1.31 trillion, leading the memory chip sector. The Philadelphia Semiconductor Index gained 1.55%, while chip stocks including ARM and AMD also advanced.
Just days earlier, SK Hynix had come under heavy selling pressure. Concerns over the expansion of AI infrastructure weighed on the market: CoreWeave plunged 6%, SK Hynix fell more than 7% at one point, and South Korea’s KOSPI dropped 7.6%, with the stock sliding to 1.257 million won. But within just a few days, the stock surged 30% in South Korea to hit its upper price limit. Its ADR rose nearly 8% in overnight trading, while a Hong Kong-listed 2x leveraged product jumped as much as 70%, staging a dramatic comeback.
The main catalyst for this rally was Goldman Sachs turning bullish on the memory sector. Goldman said Micron and SanDisk had broken out of their summer downtrends, while hedge funds had previously been substantially underweight. If technical conditions improve, there is ample room for them to re-enter the market, shifting the direction of the “pain trade” upward. Micron and SanDisk rose in response, and memory ETFs outperformed the broader market.
Fundamentals are also providing support. AI data centers are driving a supercycle in memory, and Samsung’s third-quarter operating profit soared 782.5% year over year, surpassing 100 trillion won for the first time. Forecasts for DRAM price increases have been raised to 10%–20%. HBM4 is in short supply, and the supply-demand gap could persist through 2027. As a leader in HBM, SK Hynix is one of the biggest beneficiaries of surging demand for AI memory.
However, concerns remain. Kioxia’s CEO said NAND prices had risen enough and should not be raised sharply further. Goldman also cautioned that memory prices and capacity could reverse quickly, making Micron’s results a key test. Overall, SK Hynix’s sharp rally reflects both improving sentiment and strength in the AI memory market, but cyclical risks remain a concern in the second half of the memory supercycle. #SKHy #SNDK #Musk's #SKHYNIX
