SK Hynix Tumbles Over 5% Nearing $150 Mark as Memory Stocks Extend Losses

TradingKey - Memory stocks continue to fall as SK Hynix plunges over 5%, leading the semiconductor sector lower.

On October 13, Eastern Time, the memory sector in the US stock market extended its decline, with related stocks generally falling in pre-market trading. Micron (MU) and Seagate Technology (STX) fell about 3%, SanDisk (SNDK) and Western Digital (WDC) fell about 4%, while SK Hynix led the losses, dropping around 5% to a low of $151.5.

SK Hynix stock price chart, Source: TradingView

This collective plunge in memory stocks indicates that the market has rapidly shifted from extreme optimism regarding the AI memory supercycle to a risk-averse phase characterized by high-level profit-taking and competitive landscape restructuring, driven by the impact of technological breakthroughs from competitors. Chinese DRAM giant ChangXin Memory Technologies (CXMT) announced major technological progress in next-generation 4F² DRAM architecture and previewed mass production of DDR5 server memory by the end of 2026.

Although the HBM segment remains difficult to replace in the short term, expectations of increased supply in the commodity and server DRAM markets have sparked institutional concerns over the erosion of future market share and product premiums. In addition, influenced by persistently high US Treasury yields and macroeconomic risk aversion, memory stocks may continue to face downward pressure.