Why are Micron, SK Hynix and Samsung stocks falling? China’s CXMT sparks chip sell-off
Micron, SK Hynix and Samsung stocks fall as China’s CXMT advances a new memory-chip design, raising competition fears despite strong AI-driven demand.
Micron, SK Hynix, and Samsung stocks experienced a sell-off due to concerns over increased competition from China's CXMT, a memory-chip maker. CXMT announced progress on a new memory-cell design that promises more storage in less physical space, creating a threat to the dominance of Samsung, SK Hynix, and US-based Micron in the global DRAM market.
Together, these three companies account for roughly 90% of the global DRAM market. CXMT's planned introduction of a new server memory product using this design by the end of 2026 could intensify competition, contributing to the sell-off in memory-chip stocks. The announcement of this advancement has added to the ongoing sell-off as investors assess its potential impact on established manufacturers.
Despite their recent high valuations driven by the artificial intelligence boom, all three companies have since fallen from their all-time highs. Samsung's record profit forecast failed to lift the broader chip sector, and Micron's strong financial results did not prevent the latest sell-off. The main concern now is whether China's CXMT could challenge the market leaders in the future.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
