SK hynix (SKHY) shares plummeted 6.07% during intraday trading on Monday, as a confluence of negative catalysts weighed heavily on the memory chip giant. The sharp decline extended pre-market losses and reflected mounting investor concerns over the company's near-term pricing power and profit outlook.

The sell-off was primarily triggered by UBS cutting its target price on SK hynix from 3.2 million KRW to 3.0 million KRW. The investment bank noted that the company's Long-Term Agreement (LTA) revisions are progressing faster than expected, with 10 contracts already signed with major U.S. hyperscale cloud providers and large OEM manufacturers. UBS cautioned that while these LTAs should benefit long-term margins and returns, they may cap short-term average selling price (ASP) upside. The bank also lowered its operating profit forecasts for 2027 and 2028 by 19% and 18% respectively, citing a higher LTA coverage ratio and moderated DRAM ASP growth assumptions.

Broader market weakness compounded the pressure, with the Korean KOSPI index suffering a sharp sell-off and chip stocks declining across the board. U.S. memory peers Micron Technology, SanDisk, and Western Digital also traded lower, reflecting widespread sector headwinds. Despite Moody's upgrading SK hynix's credit rating to A3 with a stable outlook on the same day, the positive development failed to offset the prevailing negative sentiment surrounding the stock's near-term earnings trajectory.