Chinese chipmaker CXMT's progress sends memory stocks sliding
Shares of Micron, Sandisk and other memory makers fell after reports that China's CXMT advanced new chip designs.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
China's leading memory chipmaker CXMT has reportedly made progress on new chip designs, prompting a sell-off in major memory stocks such as Micron, Sandisk, SK Hynix and Western Digital. Micron shares fell about 4.6% on October 13 and extended their slide the next day, closing down $35.85. Some analysts argued the CXMT claims do not threaten Micron and Sandisk.
Why it matters
Investors worry that the Chinese company could bring growing competition to memory chip makers and pressure chip pricing. Micron's shares were pressured by these concerns about Chinese competition and the broader AI trade.
Timeline
- Oct 13, 8:41 AM ET: Reports said CXMT, China's leading memory chipmaker, had made progress on new designs, and memory stocks began to slide.
- Oct 13, 12:16 PM ET: Micron shares were down about 4.6% at $943.165, as China's plans to introduce server memory using a denser design weighed on the stock.
- Oct 14, 12:40 PM ET: Micron fell another roughly 4% on Tuesday, closing at $953.19, down $35.85 from the previous session.
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