See the full story in the original article.
Read the original on Yahoo Finance ↗
Related news
- Broadcom's AI Durability Warning Triggers Sharp Drop In SK Hynix, Samsung In Korea; Nvidia's China AI Chip Share Falls As Huawei Closes In
South Korean chip stocks fell sharply on Tuesday after Broadcom and Intel executives warned about financing constraints on AI infrastructure spending. Samsung Electronics dropped 8% and SK Hynix 4% in Seoul, and the KOSPI was briefly halted during the sell-off. According to IDC data reported by Reuters, Nvidia's share of China's data-center AI chip market fell to 34% in the first half of 2026, as its shipments dropped 44% to 678,000 units amid U.S. export curbs. Huawei shipped 572,000 units, capturing 28% of the market and narrowing the gap. Some X users argued that Broadcom CEO Hock Tan's remarks were misread, since he was bullish on AI demand.
- Elon Musk Says Micron Is Making a 'Smart Move' on Memory. Micron Stock Falls Anyway.
- Dow Rises 200 Points, Nasdaq Wavers: China Chip Competition Hits Tech Stocks, Oil Climbs
U.S. stocks were mixed on Monday as the Dow rose more than 200 points while the Nasdaq slipped, with chip stocks such as Micron and SanDisk falling on concerns about competition from China's CXMT. Salesforce gained after Bank of America double-upgraded it to Buy with a $285 price target, while Wells Fargo downgraded Adobe to Underweight with a $225 target. eBay rose as much as 5.5% after Morgan Stanley named it its top internet pick, but Cerebras Systems fell 9.6% and hit a record low of $147.77, less than half its $350 IPO price, after a report that OpenAI used Nvidia chips for a feature of its latest AI model. Oil rose around 2%, with WTI near $93 and Brent near $107, after renewed attacks on energy infrastructure and doubts over a Russia-Ukraine energy ceasefire.
- Memory stocks are getting hammered. China and a 2029 oversupply are the big worries
Memory chip stocks have slumped this week amid broader market turmoil, with SK Hynix down 26%, Samsung down 22% and Micron down about 11% over five days. The initial selloff followed China's CXMT announcing a server memory product with a new architecture that could offer higher storage density, though some analysts doubted it could scale production with good yields and said it would not change the supply-demand balance. Traders also weighed a Maeil Business Newspaper column in which experts expected a flood of new supply to turn memory into a 'red ocean' in 2029 and the supercycle could end by 2030, while Elon Musk said China would be making 'a LOT of RAM' in 2028. Most analysts have not echoed the 2029 forecast, and Counterpoint Research expects DRAM prices to fall about 23% in 2028 from 2027 but remain up about 230% versus 2025, as long-term agreements may limit sharp declines.
- China Spooked Memory Stocks. Investors Picked Their Losers.
- Memory Stocks Slide as China’s CXMT Flags Denser Chip Design: Micron and SK Hynix Fall 4%, Western Digital Drops 2%
Memory stocks fell after China's ChangXin Memory Technologies (CXMT), which is not listed in the U.S., said it has made significant progress on a new cell design that increases storage density. Micron fell 4% to $984.28, SK Hynix dropped 4% to $162.13, Western Digital slid 2% to $389.04 and the Roundhill Memory ETF (DRAM) fell 4% to $54.75, while SPY was nearly unchanged at $778.55. CXMT aims to launch a server memory product using that design by the end of this year, in a segment where AI buildouts have driven the strongest demand. Micron's adjusted gross margin reached 87% last quarter versus 45.7% a year earlier, and its fiscal Q4 2026 revenue of $54.23 billion beat estimates of $50.97 billion. Micron guided fiscal Q1 2027 revenue to $61.5 billion at the midpoint, and CEO Sanjay Mehrotra said demand is expected to exceed supply in calendar 2027 and 2028, though CXMT's server product has not yet shipped.
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.