SEOUL, July 17 (AJP) - Goldman Sachs downgraded its investment rating on SK hynix to "neutral" from "buy" on Thursday, warning that intensifying competition in the high-bandwidth memory (HBM) market could trigger the first price decline in the segment next year.
In a research note, the U.S. investment bank cautioned that pricing power is gradually shifting to major customers — such as Nvidia — potentially undermining the profitability of HBM suppliers.
Although SK hynix has benefited from strong share price gains this year, Goldman said the firm’s current valuation leaves little room for further upside amid growing downside risks in 2026.
“We are becoming increasingly cautious on the stock,” according to the note. “The shares continue to significantly outperform, but headwinds from pricing pressure and heightened competition warrant a more balanced stance.”
The bank added that it would need to see further upward revisions in medium-term demand and pricing for both HBM and conventional DRAM to justify a more bullish outlook.
SK hynix shares fell sharply following the downgrade, dropping more than 8 percent in intraday trading to the 270,000 won range. The stock had closed at 300,000 won on July 14, its highest level in 12 years since joining the SK Group.
The downgrade comes amid a growing chorus of concern over the outlook for HBM pricing. Daishin Securities recently revised its 2026 forecast for HBM average selling prices, projecting a 6 percent decline — down from a previous estimate of a 7 percent increase.
Still, some analysts maintain a more positive view of the company’s strategic positioning. SK hynix remains the leading supplier of HBM chips to Nvidia, which accounts for roughly 70 percent of global demand. In March, the company became the first to deliver samples of sixth-generation HBM4.
Hana Securities noted that while SK hynix may face some erosion in market share due to Micron Technology’s entry into the HBM3E space, the firm retains competitive advantages in early product deployment and profitability management.
“As long as SK hynix can maintain its early-mover advantage and supply to Nvidia, its leadership in AI memory chips should remain intact,” Hana wrote.
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Candice Kim
candicekim1121@ajupress.com
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