SK Hynix, SanDisk, and Micron Drop 3% Despite Goldman Sachs Calling China Chip Fears Overdone

Memory chip stocks are under pressure again, and a supportive call from Goldman Sachs (NYSE:GS | GS Price Prediction) hasn’t reversed the selling. SK Hynix (NASDAQ:SKHY) shares are trading lower, down 3% at $141.97 this morning.

Similarly, SanDisk (NASDAQ:SNDK) stock is down 3% to $1,357.02. At the same time, Micron Technology (NASDAQ:MU) stock is down 3% to $906.11.

A sector fund shows how broad the pressure is. The Roundhill Memory ETF (CBOE:DRAM) is down 2%. Large-cap tech is far steadier, and the Invesco QQQ Trust (NASDAQ:QQQ) is down just 0.3%.

Goldman Sachs Pushes Back on CXMT Fears

On Friday, Goldman Sachs told clients that SK Hynix and Samsung Electronics offer attractive risk and reward after the memory selloff. Its analysts argued the market has overestimated how quickly China’s CXMT can close the technology gap in advanced memory chips.

Memory stocks sold off after CXMT announced progress earlier this week on a denser memory-chip design. South Korea’s Kospi index rebounded on Friday after a steep plunge on Thursday, giving SK Hynix a stronger background in its home market. However, the U.S.-listed shares are still falling.

Seoul’s stock market matters here because SK Hynix shares trade on the Korea Exchange as part of the SK Group conglomerate. The company ranks among the world’s largest manufacturers of memory chips, and its American Depositary Shares give U.S. buyers access to the same business.

Flash Storage Sits Further From the CXMT Debate

Both SK Hynix and Micron make memory chips for AI servers, the kind of advanced memory at the center of Goldman’s argument about CXMT. High-bandwidth memory (HBM) is where SK Hynix has emerged as a critical supplier, since those chips are essential components in AI accelerators and high-performance computing systems. Micron is also shipping HBM4 to a lead customer, which puts it in the same advanced memory race.

SanDisk sells flash storage that Goldman called less exposed to the CXMT technology. Its datacenter segment focuses on enterprise and cloud storage for AI workloads, which keeps the company tied to AI infrastructure spending.

Considering the SK Hynix Bull and Bear Cases

Goldman’s view that SK Hynix’s technology lead holds is central to the argument for owning the stock. HBM demand for AI data center buildouts has powered SK Hynix’s recent growth, and that franchise is what the Goldman note supports. The same expansion feeds a wider set of suppliers beyond the chipmakers, which we broke down in a free report on seven AI infrastructure names.

The bear case for SK Hynix is that China’s capacity ramp and doubts about AI spending keep weighing on memory pricing. Pricing pressure of that kind could reach beyond SK Hynix, since Micron also sells memory chips for AI servers.

Inside the Roundhill Memory ETF, SK Hynix, Micron and SanDisk all sit in the same portfolio. Samsung Electronics, SK Hynix and Micron rank as the fund’s three largest listed positions, which makes the DRAM ETF a close read on the advanced memory debate Goldman addressed. SanDisk holds a much smaller slot, so the fund depends far more on memory chips than on flash storage.

CXMT’s Progress Sets the Next Test for SK Hynix

SK Hynix stock is caught between a supportive research note and a market that’s still selling memory names. Shareholders who agree with Goldman may want to hold their positions to a moderate size, since the bear case on China’s capacity expansion and AI spending still carries weight.

The next test for SK Hynix is whether its technology lead holds up against CXMT’s progress on a denser memory-chip design. Traders may choose to keep their SKHY stock exposure limited until the question of whether CXMT can close the gap in advanced memory chips resolves.

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