Why Is SK hynix Stock Falling Monday?
SK hynix (SKHY) shares sank nearly 8% premarket as growing AI safety concerns and proposed speed limits sparked AI chip selloff fears.
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SK hynix reportedly in early talks with Intel for U.S. memory production in Ohio. Premarket stock prices jump.
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SK hynix (SKHY) shares sank nearly 8% premarket as growing AI safety concerns and proposed speed limits sparked AI chip selloff fears.
The Federal Reserve raised interest rates by 25 basis points to 3.50%-3.75%, marking the first hike in three years. Major indices declined with the S&P 500 falling 0.45%, Dow Jones dropping 1.21%, and Nasdaq slipping 0.01%. AI stocks recovered slightly with Dell, Intel, and Nvidia finishing in the green. Traders are pricing in potential further rate hikes, which typically pressure equities in the short term but historically lead to gains within a year.
Intel stock surged 4.03% to $101.05 on reports of potential manufacturing talks with SK Hynix to produce memory chips domestically in the U.S. for the first time. Multiple analyst target raises, including Melius Research's $165 price target and potential $200 upside in two years, also drove the gain. The deal could strengthen Intel's foundry business and attract high-profile customers amid growing AI demand.
SK Hynix and Intel are exploring U.S. memory chip production as demand for DRAM and high-bandwidth memory surges. Here are the ETFs to watch.
Marvell Technology stock surged up to 5.4% following reports of a potential deal between SK Hynix and Intel to manufacture memory chips in the U.S. for the first time. As a partner of SK Hynix working on data transfer acceleration, Marvell benefits from any steps to ease the memory chip shortage bottleneck in AI. While Marvell trades at a premium valuation of 34x next year's earnings, its record revenue and accelerating growth support the positive momentum.
Intel is in talks with South Korean chipmaker SK Hynix to lease part of its $28 billion Ohio manufacturing facility for memory chip production. The deal could help Intel monetize its massive Ohio campus investment, though it requires South Korean government approval due to concerns about sensitive technology exports. Intel's stock rose 4% on the news as the company seeks to generate returns from its foundry business.