Story
Chip Stocks Tumble on SK Hynix Warning; Agenus Rallies on Funding News
Summary
Shares of Micron and Western Digital fell sharply in premarket trading, dragged down by a selloff in South Korean chipmaker SK Hynix. In contrast, biotech firm Agenus surged after announcing a significant private placement financing deal.
U.S.-listed semiconductor stocks faced significant premarket pressure on Monday, following a sharp selloff in Asian memory-chip makers. In a contrasting move, biotechnology firm Agenus Inc. saw its shares soar after securing a substantial new financing agreement.
Chip Sector Under Pressure
The weakness in the semiconductor space was triggered by a more than 15% plunge in the shares of South Korean memory-chip giant SK Hynix. According to reports, the selloff was prompted by a South Korean brokerage that forecast the company's second-quarter earnings would miss market expectations, citing slower-than-anticipated shipments of high-bandwidth memory (HBM) chips.
The negative sentiment quickly spread to U.S. markets, impacting companies with exposure to memory and data storage. Key premarket movers included:
- Micron Technology (MU): Shares fell 5.1% as the company is a direct competitor to SK Hynix in the memory-chip market.
- Western Digital (WDC): The data storage company's stock dropped 5.4%, caught in the broader sector-wide downturn.
AdAgenus Secures Key Financing
Biotechnology company Agenus (AGEN) was a standout gainer, with its shares surging 13% in premarket trading. The rally followed the company's announcement of an $85 million private placement financing deal led by Commodore Capital and other life sciences-focused investors.
The agreement could potentially expand to $340 million if all associated purchase warrants are exercised. Agenus stated the proceeds are intended to fund its Phase 3 ROBBIN clinical trial and extend its operational cash runway through the end of 2031, providing a significant long-term financial buffer.