SK Hynix (NASDAQ:SKHY) Stock Falls 4% - Here's What Happened
CXMT said it made progress on a denser server memory design, and Micron and SK Hynix each fell 4% as investors weighed margin pressure.
- On Monday, Chinese chipmaker ChangXin Memory Technologies claimed progress on a dense server memory design, triggering a sharp market selloff. Micron Technology and SK Hynix shares both fell 4%, erasing about $108 billion in combined value.
- The new design utilizes "4F square" stacked DRAM architecture, which CXMT says increases storage density. Both SK Hynix and Samsung Electronics have explored this same technology to fit more memory cells on chips.
- Micron Technology fell 4.5%, erasing about $52 billion, while SK Hynix lost about $41.5 billion in Seoul and Sandisk Corp. dropped 6.6%, or about $15 billion. The Roundhill Memory ETF fell 4%, showing the selloff hit the memory sector exclusively.
- While CXMT plans to release a server product later this year, skeptics warn memory is a boom-and-bust business. Optimists maintain CXMT tech still trails industry leaders "by two or three generations," noting "CXMT may be catching up, but it."
- Micron maintains a strong competitive position with an 87% adjusted gross margin last quarter, up from 45.7% a year earlier. Chief Executive Sanjay Mehrotra forecasts artificial intelligence demand exceeding supply through 2028, positioning the company for sustained growth.
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Nvidia, Micron, SK Hynix shares slump up to 5% as China's CXMT steps up challenge to global chipmakers - What it means
US chip stocks fell as investors reacted to reported advances by Chinese memory maker CXMT, which plans to launch a new server memory product by the end of 2026. Oil prices also rose amid escalating Middle East tensions, adding to pressure on broader markets.
Why Micron Stock Dropped on Monday
Key PointsCXMT has made "key progress" on "4F square" technology to increase DRAM storage density. SK Hynix and Samsung on working on similar advances.CXMT memory chips cost as much as Korean or Western alternatives, and are "two or three generations" behind.10 stocks we like better than Micron Technology › Micron (Nasdaq: MU) stock sank 4.2% through 10:55 a.m. ET Monday -- and it's no great mystery why.Three months ago, worries about the durabi…
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