Micron, SK Hynix Face HBM Price Compete as Stocks Plunge

According to reports, Micron Technology, a major US memory manufacturer, is under mounting pressure from an intensifying price war in the high-bandwidth memory (HBM) market. Its stock recently fell in tandem with SK Hynix, the Korean memory leader. According to Goldman Sachs analyst Giuni Lee on October 17, HBM prices are expected to decline for the first time by 2026, prompting Goldman to downgrade SK Hynix's investment rating from "Buy" to "Neutral."

Lee warned that HBM market competition will escalate in 2025, potentially shifting pricing power to one of SK Hynix's key customers—widely believed to be Nvidia. The Goldman team further forecasted a year-on-year decline in SK Hynix's operating profit next year, contrary to the market's consensus expectation of 17% growth.

In line with this view, Korea's Daishin Securities sharply revised its 2025 HBM average price forecast from a 7% increase to a 6% decline, citing risks that HBM4’s pricing advantage may erode. Following these developments, Micron's shares dropped 2.72% to $113.26 on October 17, marking a low not seen since June 9. SK Hynix plummeted 8.95% to 269,500 KRW, its lowest since June 23.

Significantly, SK Hynix is Nvidia's primary HBM supplier. However, Korean media reports suggest that Samsung Electronics is now in talks with Nvidia to supply 12-layer stacked HBM3E memory for its upcoming GB300 Blackwell Ultra products. If Samsung becomes the third supplier of 12-layer HBM3E, Nvidia could gain greater leverage in price negotiations against both SK Hynix and Micron.

Industry sources noted that SK Hynix's 12-layer HBM3E is roughly 60% more expensive than its 8-layer variant. From Nvidia's perspective, Samsung's entry, pending quality validation, would encourage competitive bidding among suppliers. Rumors also indicate that Nvidia may be delaying its HBM4 adoption timeline to further benefit from this competition.

The ongoing HBM price battle reflects shifting market dynamics and heightened rivalry. With Samsung's potential entry, competition is set to intensify further, directly influencing supplier profitability and market positioning. The future trajectory of the HBM sector, along with strategic shifts by major players, remains a critical area to watch.