Micron Shares Tumble as Goldman Warns of HBM Price Trouble Ahead

July 17 - Micron Technology MU shares fell nearly 4% on Thursday morning, tracking a broader dip in the memory chip sector after Goldman Sachs downgraded South Korea's SK Hynix.

Goldman analyst Giuni Lee cut the rating on SK Hynix to Neutral from Buy, citing expected weakness in high-bandwidth memory (HBM) pricing by 2026. Shares of the chipmaker slid about 9% following the move.

The analyst noted that pricing power is beginning to shift toward large customers, where SK Hynix has significant exposure. Lee also flagged downside risks to the company's 2025 earnings, forecasting a drop in operating profit, in contrast to consensus estimates calling for 17% growth.

Goldman's revised forecast for SK Hynix's 2026 operating profit now stands 19% below market expectations, adding to investor unease.

Micron, which competes directly in HBM chips for AI systems, was swept up in the negative sentiment as the downgrade raised questions about demand and pricing in the sector.

The memory chip market has been a key beneficiary of AI-related growth, but increasing competition and margin pressures are starting to cloud the outlook, analysts say.