SK hynix shares fall amid AI sector selloff

SK hynix Inc ADR fell 7.0% in morning trading Friday to $150.76 as a selloff spread across the global memory chip sector. The decline followed a report from a major cloud and AI infrastructure company showing that heavy capital investment pushed its free cash flow into negative territory, raising concerns about the pace of AI spending.

The stock also faces pressure from its recent earnings report. SK hynix posted record third-quarter 2026 revenue of KRW 104.6 trillion with an 80% operating margin, marking its sixth consecutive quarter of record results. The company's quarterly earnings per share fell short of Wall Street consensus estimates, creating valuation concerns despite revenue exceeding expectations.

Cantor Fitzgerald reduced its price target on SK hynix shares while keeping an Overweight rating. William Blair maintained its Outperform rating and Nomura/Instinet kept its Buy rating, pointing to confidence in the company's HBM4 technology position.

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