Micron Stock Slips 2% as China Memory Chip Threat Ramps Up

Dow Jones19:09

Memory chip makers have been on a tear this year, but the landscape could be about to change as a Chinese rival seeks to muscle in on their turf.

Micron and its peers were taking a hit on Monday as investors reacted to the news that China's ChangXin Memory Technologies, or CXMT, had advanced development of a new chip that can store more data.

Shares of Micron dropped 2.03% to $1,008.07 ahead of the opening bell. The stock was up 261% for the year through Friday's close, surging due to the buildout of AI data centers driving up memory demand.

South Korean memory-chip makers were also struggling. SK Hynix American depositary receipts slid 1.5% in premarket trading. Samsung Electronics stock closed 4.4% lower.

CXMT President Cao Kanyu said at an industrial event that the company planned to roll out a new product by the end of the year, according to a report by the South China Morning Post that cited a company statement.

The memory chip features a so-called 4F square design, which is able to store more memory on a single chip. Both SK Hynix and Samsung have also been exploring that set-up.

Investors have been worrying for a while that CXMT will upend the memory market. Shares surged 466% on their trading debut in July, giving the company a market capitalization of just under $500 billion.

CXMT remained China's largest company by total valuation as of Monday's close, ahead of tech giant Tencent and banks China Construction Bank and Agricultural Bank of China.

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Comments

  • MisterWillow
    19:38
    MisterWillow
    Neh, even if they are able to produce it,  major CPU and GPU makers will not use them due to tarriff or sanction. Don't see it as a threat to MU.
  • Aliba
    19:22
    Aliba
    Bullshit threat - cheating Micron. No bullshit threat from anyone 'its the trap they created for investors 
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