Hynix results ‘clear positive catalyst’ for Micron, says Cantor Fitzgerald

Cantor Fitzgerald analyst C.J. Muse says that while SK Hynix reported a significant beat on both sales and earnings, the shares traded lower, likely due to yesterday’s slide weakness in technology stocks, and specifically artificial intelligence related names. Hynix’s Q2 was marked by strength in DRAM, led by AI and high bandwidth memory, while NAND came in a little lighter than consensus, the analyst tells investors in a research note. Cantor sees Hynix’s results as “clear positive catalyst” for Micron Technology (MU), and to a lesser extent, for the firm’s top pick Western Digital (WDC), given the miss in NAND revenues and commentary on inventory and demand.