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.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related news
- SK Hynix Sinks 5% as China's CXMT Aims at Server Memory; Western Digital Drops 4%, Micron Falls 3%
SK Hynix shares fell 5% to $148.70 after China's CXMT signaled it is aiming a denser chip design at server memory, the most profitable part of the memory market. The selling spread to Western Digital (down 4% to $364.04) and Micron (down 3% to $925.45), while the Roundhill Memory ETF fell 4% and the Invesco QQQ Trust fell 2%. SK Hynix has dropped 22% over the past month, even though its preliminary Q2 FY2026 revenue reached 79.32 trillion won, up 256.8% year over year. Micron said demand will exceed supply in calendar 2027 and 2028, with more than 75% of its 2027 output already committed. The key test ahead is whether CXMT can win qualification from hyperscale customers for its server memory.
- Micron, SK Hynix stocks fall as Chinese memory maker announces progress in new design
Micron and SK Hynix shares fell 3%, while Samsung Electronics dropped 4% alongside the broader South Korean market, after Chinese memory maker ChangXin Memory Technologies (CXMT) announced significant progress in a new memory-cell design aimed at increasing storage density. CXMT president Cao Kanyu said the company aims to introduce a new server memory product built on this architecture by the end of 2026. Micron stock is down roughly 16% from its all-time high in June, although the company posted strong quarterly results in September. D.A. Davidson's Gil Luria raised his Micron price target to $3,000 from $2,000 last week, the highest on Wall Street, citing long-term growth opportunities tied to artificial intelligence.
- Micron Falls 5% as China’s CXMT Targets Server Memory; SanDisk Drops 4%
Micron Technology shares fell 5% to $942.21 in morning trading as CXMT, a privately held Chinese rival, said it plans to launch a denser server memory product by the end of this year, a move into the high-end server market where Micron competes directly. SanDisk fell 4% to $1,421.78 even though it has no server memory line, which the article attributes to sentiment spilling over across the memory group. The Roundhill Memory ETF (DRAM) dropped 5% to $51.73, while the Invesco QQQ Trust fell only 0.7%. This is the second straight session of losses for the group, and Micron recently reported record fiscal Q4 2026 results and guided the current quarter above that level.
- 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.
- 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.
- Is Korea’s Memory Chip Boom Ending? Elon Musk Points to China
Related markets
Latest news
- Earnings live updates: All eyes on Musk and Meta as Q3 earnings rev up
Big tech is the focus of this week's earnings season, with Meta (META), SpaceX (SPCX) and Tesla (TSLA) due to report. SpaceX and Netflix (NFLX) kick off on Tuesday after the bell, while Tesla and Meta report on Wednesday, offering an early read on the Magnificent Seven and the AI trade. Wall Street estimates S&P 500 earnings growth of 29.6%, according to FactSet; if that holds, it would be the third straight quarter of growth above 25%. General Motors (GM), IBM (IBM), United Airlines (UAL) and Procter & Gamble (PG) also report this week.
- Mysterious UAV Enters Lithuania as NATO Fighters Fail to Intercept It
On the morning of October 18, an unidentified drone entered Lithuanian airspace between 6:00 and 8:00, prompting an air alert and the scrambling of NATO jets, which escorted the object but could not shoot it down due to difficult weather. Debris later found in Juojonis village in Pasvalys district was initially identified as drone parts, and the military says it may have entered from Poland. Latvia issued a similar warning for several regions and cancelled it at 8:12, though its army has not confirmed the object was a drone. Prime Minister Mindaugas Sinkevičius said the sabotage hypothesis must be verified, while law enforcement works to determine the drone's origin; earlier, on September 15, Italian Eurofighter Typhoons shot down a drone that had flown into Lithuania from Belarus.
- Corning Is Moving Beyond Fiber Cables. Can AI Networking Pay Off?
Corning (GLW) is extending beyond fiber cables into optical components inside AI systems, having demonstrated optical connectivity with Lumentum and Astera Labs on October 12 and partnered with Nvidia on a planned tenfold expansion of optical connectivity capacity in the US. Its Optical Communications sales rose 32% year-over-year to $2.07 billion in Q2 2026, and management sees a potential $10 billion revenue opportunity by 2030 from a photonics platform, though timing and adoption remain uncertain. Still, the valuation is elevated, with a forward non-GAAP P/E of 44.81x, about 84% above its 5-year average of 24.31x, while analysts expect EPS to grow 30.41% in December 2026 and 33.02% in December 2027. The article notes that slower AI spending or delayed CPO adoption could pressure the stock.
- Google’s Next AI Chip Is Running Late. Why Marvell May Be Fine
GF Securities says one part of Google's TPU v9 design slipped about three weeks, likely due to a redesign, pushing the timeline back roughly a quarter, with mass production now expected in Q2 2027. Packaging substrate yields of just 45% to 50% are a key obstacle, but GF sees no demand problem, citing strong TPU demand from Google and external customers such as Anthropic. The firm points to MediaTek, not Marvell (MRVL), as facing short-term headwinds, so any benefit to Marvell appears indirect. At 63x forward earnings, a 66% premium to its five-year average P/E of 38.02x, the article concludes the delay is not by itself a reason to buy.
- Stocks bounce back, Anthropic's "Public Benefits", and Musk's promise to American kids
The 8:30 show, hosted by Julie Hyman, Pras Subramanian and Jake Conley, discusses the stock market's rebound. Other topics include Anthropic's (ANTH.PVT) commitment to a “Public Benefit” fund, Elon Musk's promise to American children about SpaceX (SPCX) stock ahead of earnings, and doubts over an IPO after Microsoft (MSFT) withdrew.
- Microsoft vs. Alphabet: Is GOOGL’s Cloud Growth Worth More Than Investors Think?
Microsoft (MSFT) and Alphabet (GOOGL) trade at forward P/E ratios of 25.13 and 22.83, respectively. Google Cloud revenue jumped 82% to $24.8 billion in the second quarter, with operating income rising from $2.8 billion to $8.8 billion, while Azure and other cloud services grew 43%. Both companies face heavy infrastructure spending: Microsoft spent $35.8 billion on property and equipment, pushing its cloud gross margin down to 65%, while Alphabet spent $44.9 billion, leaving roughly negative $5.85 billion in quarterly free cash flow. The article argues Alphabet's $9.11 EPS is unreliable because about $98 billion came from net other income, so its 30% operating-income growth better reflects underlying performance. Microsoft has a more diversified earnings base and higher consolidated operating margins, but the key question is whether either company can turn AI demand into cash after paying for infrastructure.
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.