Stock Track | Roundhill Memory ETF Plummets 5.08% in Pre-Market on Chip Pricing Fears, Samsung Labor Woes, and CXMT Expansion

Stock Track07-24 21:36

The Roundhill Memory ETF (DRAM) tumbled 5.08% in pre-market trading on Friday, reflecting broad-based pressure across memory chip stocks as a confluence of headwinds rattled investor sentiment.

Leading memory names came under selling pressure, with Micron Technology slipping 1.8% and SK Hynix's US-listed shares falling 2.3% in pre-market action, as lingering concerns over the sustainability of memory chip prices continued to weigh on the sector. Adding to the gloom, Samsung Electronics shares plunged over 8% after the company's decision to award substantial bonuses to some employees triggered a wave of labor protests across major South Korean firms, with unions at several industrial giants demanding similar payouts tied to operating profits.

Meanwhile, competitive dynamics intensified as China's ChangXin Memory Technologies (CXMT) signed a five-year, $70 billion-plus long-term supply agreement with ByteDance, while simultaneously building two new production plants that could double its capacity and potentially surpass Micron's output before 2030. The deal marks a significant milestone for domestically produced memory chips entering core server supply chains, raising fears of increased supply and pricing pressure for established global DRAM players.

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