SK hynix Inc. (NASDAQ:SKHY) stock came under pressure Monday as concerns about the pace of frontier AI development weighed on semiconductor and other AI-linked stocks.
The stock fell nearly 8% in Monday’s premarket session. The Nasdaq is down 1.59% while the S&P 500 has shed 0.68%. Micron Technology Inc. (NASDAQ:MU) and other semiconductor and AI-linked stocks also came under pressure.
The selloff came as investors reassessed the outlook for AI infrastructure spending amid calls to slow frontier AI development over safety concerns.
The debate matters for SK hynix because the company is a major supplier of high-bandwidth memory used in AI accelerators. A slower pace of AI infrastructure investment could weigh on future demand for advanced memory chips.
Anthropic CEO Dario Amodei called China the “toughest dilemma” in efforts to establish a global “speed limit” on AI development. He cited competitive pressures and potential military advantages as incentives for countries to move faster.
In a CBS News “Sunday Morning” interview, Amodei said, “I don’t know if it’s possible, but we should try.” His comments followed an essay urging AI companies to slow the development of frontier models.
See More:
Top Value Stocks
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $247.67. Recent analyst moves include:
- JP Morgan: Initiated with Overweight (Forecast $245.00) (Sept. 10)
- Needham: Buy (Raises Forecast to $220.00) (Aug. 24)
- Wolfe Research: Initiated with Outperform (Forecast $200.00) (Aug. 4)
Top ETF Exposure
- GraniteShares 2x Long SK Hynix Daily ETF (NASDAQ:SKUU): 66.70% Weight
- NestYield Dynamic Income ETF (NYSE:EGGY): 5.05% Weight
- NestYield Visionary ETF (NASDAQ:EGGQ): 4.96% Weight
Significance: Because SKHY carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
SKHY Stock Price Activity: SK hynix shares were down 7.53% at $175.76 during premarket trading on Monday, according to Benzinga Pro data.
Image via Shutterstock
