China's CXMT DRAM Breakthrough Sends Micron Down 10% for the Week
MU has more than doubled off its 52-week low of $192.4.
Summary
Chinese memory maker CXMT reported progress on a denser 4F-squared DRAM architecture and plans server-memory products using it by the end of 2026, triggering a selloff that left Micron down about 10% for the week and SK Hynix down nearly 15%. Citi analysts cited by the Wall Street Journal said CXMT's process remains several generations behind industry leaders and mass production is unlikely before 2028, leaving Micron and SK Hynix time to advance their own technology. The real risk is oversupply: CXMT's progress is in conventional DRAM, not the advanced HBM that Micron and SK Hynix supply to AI processors, but more conventional capacity could weaken memory pricing and pressure the premium valuations on cycle-peak earnings. Micron's fiscal 2026 annual report said AI-driven memory demand is outpacing industry supply, supporting stronger pricing and margins, and CEO Sanjay Mehrotra said fiscal 2026 capex would exceed $25 billion with fiscal 2027 spending rising meaningfully. Watch CXMT's progress toward commercial production and any changes to Micron's and SK Hynix's capital-spending plans.
At the time of this announcement, MU was trading at $896.48 on NASDAQ in the Technology sector, with a market capitalization of approximately $1T. The 52-week trading range was $192.40 to $1,255.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.