SK hynix shares stopped rising due to the use of LRDDR5 and 3D NAND memory chips in the Huawei Mate 60 Pro smartphone

Since the beginning of 2023, SK hynix securities have risen by 60%. However, the growth of shares stopped after the memory modules of the South Korean company were found in the Huawei Mate 60 Pro.

Here's What We Know

The Huawei Mate 60 Pro was unveiled at the end of August. A few days after the announcement, LRDDR5 and 3D NAND memory modules made by SK hynix were found in the smartphone. The company said it stopped shipments in 2019 due to US sanctions. It has also launched an investigation to determine how the memory modules ended up in the Chinese smartphone.

SK hynix shares started falling last week. The securities have fallen in price by 6 per cent since Thursday. The discovery of memory modules in the Huawei Mate 60 Pro is not the only problem. Chinese authorities recently banned officials and employees of state-owned companies from using Apple smartphones. This also had a negative impact on investor sentiment, prompting investors to lock in profits.

Financial results for the quarter are expected to be worse than SK hynix had forecast. The report will be released next month. Despite the stock's rise, the South Korean company has ended three consecutive quarters with operating losses, and revenue halved last quarter compared to the same period in 2022.

Source: Bloomberg