Micron dips as Goldman Sachs downgrades South Korean rival SK Hynix

Shares of memory chip maker Micron Technology MU.O down 3.4% at $ 112.40 premarket, after Goldman Sachs downgrades South Korean rival SK Hynix 000660.KS to "neutral" from "buy"

SK Hynix's shares closed down about 9% on the Korean exchange

GS analysts expect double-digit pct. pricing decline for High Bandwidth Memory (HBM) in 2026, but they are constructive on long-term outlook for market

Given lower HBM estimates for 2026, GS expects SK Hynix's operating profit to decline next year, compared with expectations of 17% y-o-y growth

"To turn more positive on the stock, we would need to see further upside in the company's medium-term HBM and conventional DRAM demand/pricing, and also market expectations for next year's HBM outlook and thus overall earnings would need to adjust to a more reasonable level," brokerage adds

SK Hynix up about 55% YTD, while MU up 38% this year