Analyst: SK Hynix's abandonment of Solidigm's US IPO plan may benefit Micron Technology and SanDisk.

October 24: The KC Rajkumar team, analysts at LYNX Equity Strategies, said on October 23 that SK Hynix's abandonment of its Solidigm U.S. initial public offering (IPO) plan may benefit Micron Technology and SanDisk, because the decision reduces the risk of future global NAND flash supply oversupply.

The institution noted that Solidigm had originally planned to raise funds through a U.S. listing to support the expansion of NAND manufacturing capacity in the United States. The potential project could be built as a joint venture between SK Hynix and Intel, with site options including Intel's Ohio campus. The new capacity was expected to enter the market in three years or more, potentially increasing global NAND supply and pushing prices lower. With the IPO plan canceled, the related capacity expansion project has lost a potential source of financing, which helps ease market concerns about future capacity growth. LYNX believes this is generally a clear positive for Micron's and SanDisk's product pricing and valuations, but the current market environment may limit room for share price gains; Intel, meanwhile, may be slightly negatively affected by the loss of a potential manufacturing project.