SK Hynix US stocks surge to a new high, memory sector rallies across the board! Goldman Sachs declares: The worst days are over

Goldman Sachs turned positive on the memory chip sector, triggering a broad rally in storage stocks on Wednesday, with SK Hynix leading the gains in US trading and significantly outperforming the broader market.

SK Hynix's US-listed shares surged about 4% in early trading to $193.53, hitting an all-time high intraday, and closed up 7%, leading the entire memory segment. Micron Technology ended up around 2% at $1,027.77, Western Digital rose approximately 1.51% to $1,764.17, extending the strong performance seen over the past month.

Meanwhile, the Roundhill Memory ETF, which tracks the memory sector, closed up about 1% at $61.65, while the S&P 500 ETF fell roughly 0.5% to $761.87 the same day, demonstrating notable outperformance of memory stocks over the broader market.

This round of gains was directly driven by Goldman Sachs' latest research report. Goldman noted that Micron and Western Digital have both broken out of their downward trend that suppressed the stocks throughout the summer, and that hedge fund positions in the sector remain low, leaving room for capital to flow back in. However, Kioxia CEO Hiroo Ota said on the same day that NAND prices have climbed sufficiently, warning that the industry could harm its own growth if companies continue aggressively pushing for higher prices, introducing an element of uncertainty to the rally.

Goldman Sachs Turns Positive: Technical Breakout Plus Low Positioning Forms Bullish Logic

In its research note, Goldman Sachs described the latest rally in memory stocks as an early signal of investors re-entering the sector. The bank pointed out that volatility in the semiconductor sector has narrowed continuously since peaking in July, while Micron and Western Digital traded in a consolidation range throughout August, interpreting this as early-stage accumulation in an area of low positioning.

On positioning, hedge funds had sharply reduced their exposure to memory stocks during the summer sell-off, meaning that if technicals improve, there's ample room for rebuilding positions. Goldman believes that market sentiment about cyclical risks in semiconductors remains cautious, but for funds still underweight in the sector, the “pain trade” direction has shifted to the upside.

Goldman also highlighted cyclical risks: memory prices, capacity expansion, and consumer spending could all reverse quickly, and technical breakouts still require confirmation from fundamental earnings. Micron is scheduled to announce its fiscal Q4 2026 earnings after the close on September 30, which will be a key test for the bull thesis in the near term.

Kioxia CEO Cools Enthusiasm: NAND Price Gains Sufficient

On the same day as Goldman's bullish signal, Kioxia CEO Hiroo Ota said he has instructed the sales team not to continue aggressively raising prices for data center customers and frankly stated that “prices have gone up enough,” warning that excessive price hikes could damage the industry’s growth.

According to Bloomberg data, Kioxia's average NAND price rose 70% quarter-on-quarter in the three months ending June. Ota’s remarks were interpreted by the market as a measure to protect demand from a major NAND supplier, directly impacting the pricing logic behind the recent surge in memory stocks.

Ota also ruled out a merger with SK Hynix at the manufacturing level, citing antitrust obstacles and shared manufacturing facilities with Western Digital, further clarifying the competitive landscape of the memory industry.

Fundamental Support: Micron and Western Digital Both Issue Record Earnings Guidance

Despite the pricing concerns mentioned above, the latest guidance from both companies continues to provide bulls with solid fundamentals.

In its latest quarterly guidance, Micron set the midpoint for fiscal Q4 2026 revenue at $50 billion, a record high, with a non-GAAP EPS estimate of $31 and a gross margin projection of 86%. Management indicated that tight supply-demand for DRAM and NAND could persist beyond calendar year 2027.

Western Digital delivered a similar message during its August earnings call, forecasting Q1 2027 revenue between $10.3 billion and $10.8 billion, and projecting the NAND market size in calendar 2026 to exceed $300 billion, growing roughly threefold year-on-year. CEO David Goeckeler said, “Customer demand is outpacing our supply,” and expects orders to remain rationed beyond 2027.

SK Hynix: HBM Leadership as an Independent Catalyst

Among the three companies, SK Hynix has a relatively independent upward catalyst. As the leading supplier of high-bandwidth memory (HBM) for AI accelerators, SK Hynix held a groundbreaking ceremony for its HBM manufacturing base in Indiana in late August, further strengthening its US capacity layout.

Analysts believe that any future updates regarding HBM in the coming weeks could directly reinforce the sector narrative that Goldman Sachs has just endorsed.

Investors should closely monitor Micron’s September 30 earnings update to verify if HBM capacity ramp-up and pricing sustainability meet Goldman's expectations. At the same time, given the cyclical nature of the memory industry, traders should manage positions prudently and be alert to possible volatility around earnings releases, especially if the tone regarding 2027 pricing outlook changes.