SK hynix Inc. (NASDAQ:SKHY) stock slid by about 3% during Thursday’s premarket session as traders fade risk in some chip-linked names even with a firmer overnight tape. Nasdaq futures are up 0.57% while S&P 500 futures have gained 0.36%.
SK Hynix remains central to the memory trade as analysts weigh tight chip supply and AI demand against pricing risks, China competition and the recent semiconductor selloff.
Supply Limits Support Memory Stocks
Wolfe Research senior analyst Chris Caso told CNBC on Wednesday the semiconductor pullback reflects a reset in expectations after a sharp rally. He said the SOXX index doubled over roughly three months before falling about 25% from its high.
Caso said memory suppliers remain severely supply constrained because they cannot quickly increase output. He said that supports Wolfe’s bullish view on the group.
Caso also said oversupply risk looks distant because the industry lacks enough physical space to produce the semiconductors customers want.
He said any potential oversupply cycle may not emerge before 2028 at the earliest because new capacity requires new buildings that take time to complete.
Analyst Says ‘Easy Money’ Has Already Been Made
Susquehanna senior equity research analyst Mehdi Hosseini told CNBC on Tuesday that investors should stay patient with memory stocks after the recent pullback. He said the next phase depends on whether commodity memory prices can move sideways or roll over like they have in past cycles.
Hosseini said the “easy money” in memory stocks has largely been made, although he remains constructive on the industry’s longer-term outlook.
For investors without exposure to the sector, Hosseini recommended waiting rather than chasing recent weakness. “I think you’re going to have better pricing over the next month or two,” he said, adding that investors typically return to the memory sector in late summer.
While memory stocks have surrendered a significant portion of their recent gains over the past month, Hosseini noted they continue to outperform levels seen three months ago.
The comments come after a volatile month for memory-chip makers, including Micron, as investors reassess whether pricing gains fueled by artificial intelligence demand can continue.
SK hynix Price Action
SKHY Stock Price Activity: SK hynix shares were down 2.97% at $123.02 during premarket trading on Thursday, according to Benzinga Pro data.
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