SK Hynix fell 6% to $153.04 in early U.S. trading as its Seoul-listed shares posted a fifth consecutive session of declines. The selling followed a weekend announcement from Chinese memory maker CXMT, which said it had made progress on a memory-cell design that packs more capacity into the same chip area and plans to launch a server memory product based on it by year end. Western Digital and Seagate fell 7% to $361.76 and $703.58, losing more than SK Hynix even though they make hard disk drives rather than memory chips. The Roundhill Memory ETF dropped 5% to $52.07, while the Invesco QQQ Trust slipped 0.5% to $742.34. The article also cites concerns about AI spending as adding pressure to chip stocks in Europe and the U.S.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related news
- SK Hynix Sinks 5% as China's CXMT Aims at Server Memory; Western Digital Drops 4%, Micron Falls 3%
SK Hynix shares fell 5% to $148.70 after China's CXMT signaled it is aiming a denser chip design at server memory, the most profitable part of the memory market. The selling spread to Western Digital (down 4% to $364.04) and Micron (down 3% to $925.45), while the Roundhill Memory ETF fell 4% and the Invesco QQQ Trust fell 2%. SK Hynix has dropped 22% over the past month, even though its preliminary Q2 FY2026 revenue reached 79.32 trillion won, up 256.8% year over year. Micron said demand will exceed supply in calendar 2027 and 2028, with more than 75% of its 2027 output already committed. The key test ahead is whether CXMT can win qualification from hyperscale customers for its server memory.
- Memory Stocks Slide as China’s CXMT Flags Denser Chip Design: Micron and SK Hynix Fall 4%, Western Digital Drops 2%
Memory stocks fell after China's ChangXin Memory Technologies (CXMT), which is not listed in the U.S., said it has made significant progress on a new cell design that increases storage density. Micron fell 4% to $984.28, SK Hynix dropped 4% to $162.13, Western Digital slid 2% to $389.04 and the Roundhill Memory ETF (DRAM) fell 4% to $54.75, while SPY was nearly unchanged at $778.55. CXMT aims to launch a server memory product using that design by the end of this year, in a segment where AI buildouts have driven the strongest demand. Micron's adjusted gross margin reached 87% last quarter versus 45.7% a year earlier, and its fiscal Q4 2026 revenue of $54.23 billion beat estimates of $50.97 billion. Micron guided fiscal Q1 2027 revenue to $61.5 billion at the midpoint, and CEO Sanjay Mehrotra said demand is expected to exceed supply in calendar 2027 and 2028, though CXMT's server product has not yet shipped.
- SOXX Extends Selloff After 8-Day Decline, KOSPI Rebounds: Jim Cramer Calls SK Hynix 'Epicenter Of Fear'
The iShares Semiconductor ETF (SOXX) fell 0.8% overnight, extending its losing streak to eight sessions, as doubts grew over whether AI investments will pay off quickly enough and financing risks mounted. AMD and Intel slipped less than 1%, while Nvidia gained 0.2%. Higher-than-expected US inflation has raised expectations of further rate hikes, adding pressure on debt-reliant companies. South Korea's Kospi plunged 7.6% on Thursday, triggering a circuit breaker, before rising 3.4% on Friday with Samsung Electronics up a similar amount. Jim Cramer called SK Hynix the 'epicenter of fear' because the Kospi is still up more than 50% and many investors are underwater, saying buyers are needed for CoreWeave bonds, Oracle stock and SK Hynix.
- Applied Digital Sinks 4% as Rotation Out of Debt-Funded AI Builders Extends; TeraWulf Dips 3%, Core Scientific Retreats 2%
Applied Digital (NASDAQ:APLD) fell 4% to around $19.59, alongside declines in TeraWulf (WULF) and Core Scientific (CORZ), as investors pulled back from debt-funded AI data center developers. JPMorgan cut the company's project finance bonds to Neutral from Overweight, citing a looming supply overhang as it prepares more borrowing, while it carried $6.4 billion of debt against $3.7 billion in cash and restricted cash at the end of Q1 FY2027. Management says it aims to keep one of the industry's strongest balance sheets through most of the construction phase. Q1 revenue rose 432.4% year over year to $341.9 million, beating expectations of $124.6 million, yet the company posted a $184 million net loss under standard accounting rules. Its bull case rests on 1.41 gigawatts of leased critical IT load and $36 billion of contracted revenue over initial lease terms, and the next debt raise will test whether borrowing costs stay favorable.
- SanDisk Drops 6% in Memory Selloff on China’s DRAM Progress; Seagate Slides 4%
Shares of SanDisk fell 6% to $1,484.21 and Seagate Technology fell 4% to $753.21 in early trading after news that ChangXin Memory Technologies, a Chinese DRAM maker not listed in the U.S., made key progress on a denser memory-cell design. The Roundhill Memory ETF (DRAM) dropped 4% to $54.64, while the SPDR S&P 500 ETF Trust was roughly unchanged at $778.75. Neither SanDisk nor Seagate makes DRAM, but memory and storage stocks tend to move together on sector sentiment. The article notes SanDisk was still up 524% year to date through the prior close, reported fiscal Q4 2026 revenue of $8.96 billion (up 371.6% year over year), and guided fiscal Q1 2027 revenue to $10.3 billion to $10.8 billion. A $14 billion buyback addition also lifts its remaining authorization to $15.5 billion.
- Western Digital Lost One Third Its Value Over 3 Months: It’S Ready to Provide 175% Returns Says This Wall Street Pro
Western Digital (WDC) trades at $380.71, down 32.4% over three months from $563.14, despite beating earnings five straight times and posting fiscal Q4 revenue of $3.75 billion, up 43.8%. The selloff was partly driven by a Nikkei report that Toshiba plans to invest about ¥60 billion ($380 million) to double hard-disk-drive production capacity by fiscal 2027, challenging the supply discipline that supports HDD pricing. Gross margin rose from 43.9% to 54.4% across fiscal 2026, guidance for the current quarter is 55–56%, and customers have signed long-term agreements reaching 2029, 2030 and 2031. The average analyst price target is $668.50 (75.6% upside), while the stock is still up 121.24% year to date. The article says the bullish case depends on long-term contract pricing and margins holding, while Toshiba's added capacity could push down pricing per terabyte.
Related markets
Latest news
- TRX Gold to Present at Red Cloud's Fall Mining Showcase 2026
TRX Gold will present at Red Cloud's Fall Mining Showcase 2026, an in-person conference at the Omni King Edward Hotel in Toronto on October 28 and 29, 2026. Stephen Mullowney is scheduled to present on Thursday, October 29, 2026 at 12:00 PM Eastern. The release describes the company as a gold producer advancing the Buckreef Gold Project in Tanzania, which includes an established open pit and a 2,000 tonnes per day plant. The May 2025 PEA outlines average annual gold production of 62,000 oz over 17.6 years.
- Tesla Stock vs. the S&P 500: Which Investment Wins Through 2030?
The article argues Tesla trades at roughly 203 times this year's expected earnings and 13 times expected sales, a valuation that looks very expensive given gross margin pressure and a slower-than-expected robotaxi rollout. The flying Roadster, slated for production in 2028, is unlikely to make a meaningful sales or earnings contribution before 2030. The author thinks a Tesla-SpaceX merger by the end of the decade, likely an all-stock deal, is more likely than not and would be a key factor in how Tesla stock performs against the S&P 500 through 2030.
- SpaceX surprises Wall Street with Oct. 20 earnings date — here's why
SpaceX (SPCX) will release earnings on Oct. 20 after the market close, a surprise since earnings dates are usually shared weeks in advance. Evercore ISI analyst Kutgun Maral says possible reasons include putting updated financials on record before new financing or getting ahead of major lock-up releases, though scheduling is also possible. Reuters reported SpaceX is seeking $40 billion in financing to buy advanced Nvidia AI chips, including about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo expected to lead. The lock-up schedule includes 1.30 billion shares two days after earnings, 329 million on 10/24, and a remaining 857 million tranche of the 180-day group.
- AEP Partners with Amazon and X-energy to Explore Advanced Nuclear Energy in Indiana
American Electric Power (AEP) has announced a joint development agreement with X-energy to evaluate the feasibility of a 960-megawatt advanced nuclear project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting development through a funding agreement. If the project reaches a final investment decision and is built, Amazon intends to buy the power under a long-term contract covering the facility's costs and operations. The initial project would include 12 Xe-100 units of 80 MW each, and the companies say it could create jobs, expand the local tax base and strengthen the grid for more than 60 years. AEP says the agreements include the financial safeguards it considers essential for any nuclear project to move forward.
- Talamore Marks One Year at Coffee with Major Advances Toward a 2027 Construction Decision
Talamore Mining marks one year since closing its acquisition of the Coffee Gold Project in Yukon, Canada, from Newmont Corporation on October 17, 2025. The company has assembled a financing package of up to C$688 million, including a C$149.5 million equity offering, a C$450 million secured project debt facility and up to C$88 million from a warrant early-exercise program. A primary road permit received in August 2026 allows completion of the 214-kilometre Northern Access Route from Dawson City. The February 2026 Preliminary Economic Assessment outlined a 13-year open-pit heap leach mine with an after-tax NPV (5%) of US$2.3 billion and an after-tax IRR of 47.8%. G Mining Services is completing the Feasibility Study, expected in Q1 2027, ahead of a construction decision targeted for the first half of 2027.
- Tiger Gold Extends Mineralization to the South at Ceibal, Drilling 268 m @ 0.5 g/t Au from Surface
Tiger Gold reported assay results from hole CEDDH-023 at its Ceibal target within the Quinchía Gold Project in Colombia. The hole intersected 268 metres grading 0.5 g/t Au from surface, extending mineralization south into a previously untested part of the corridor. Mineralization remains open to the west and southwest, where additional holes are testing for extension, and assays from Ceibal and Tesorito are pending. The drilling is intended to support a maiden Mineral Resource estimate, targeted for near the end of Q1 2027.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.