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SK hynix shares losing ground amid slowdown concerns for memory market

October 8, 2021

Shares in SK hynix Inc. plunged on concerns over a slowdown in the memory market, analysts here said Friday, as they lowered the target price for South Korea’s No. 2 chipmaker.

SK hynix closed at 94,000 won (US$78) on the Seoul bourse after a 1.78 percent decline, so far the lowest price this year, and extended its losing streak to five trading days.

SK hynix stocks have declined more than 12 percent in the past two weeks. Compared with the Feb. 25 peak of 148,500 won, SK hynix shares are down more than 36 percent.

Analysts said a gloomy forecast for the memory market is lowering expectations for SK hynix, which heavily depends on memory chips, like DRAM and NAND.

DRAM and NAND account for more than 90 percent of SK hynix’s revenue. The company is the world’s second largest DRAM supplier behind Samsung Electronics Co. and the No. 4 vendor in the global NAND market, according to industry tracker TrendForce.

This file photo, provided by SK hynix Inc. on Feb. 1, 2021, shows the company's M16 fab in Icheon, south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)
This file photo, provided by SK hynix Inc. on July 12, 2021, shows the company's DRAM chips. (PHOTO NOT FOR SALE) (Yonhap)

This file photo, provided by SK hynix Inc. on Feb. 1, 2021, shows the company’s M16 fab in Icheon, south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)