NEW YORK, July 27, 2026, 15:02 EDT – Shares of Micron slipped as new competition from CXMT heightened concerns over DRAM price pressure, weighing on the market.
- Micron Technology, Inc. NASDAQ:MU dropped 4.3% to $881.60 in late afternoon trading. U.S. markets continued trading.
- CXMT Corp SHA:688825 ended the session up 466% compared to its offer price, putting its market capitalization at $487.73 billion.
- Micron’s drop wiped out nearly $45.0 billion in value, which is approximately 5.2 times the IPO proceeds raised by CXMT.
Micron’s stock fell on Monday as investors assessed the impact of a new, well-financed DRAM competitor from China. Shares opened at $933.71 and reached a low of $855.67.
The main point of contention is pricing power. Micron’s recent DRAM revenue increase was driven mainly by elevated selling prices rather than a rise in shipment volume.
The most recent drop has wiped out approximately $45.0 billion. CXMT secured $8.6 billion from its listing in Shanghai. This means Micron’s market value fell by about $5.20 for each dollar its competitor managed to raise.
Initial estimate: Roughly 90% of Micron’s recent quarter-on-quarter DRAM sales growth was driven by pricing. DRAM sales were up 67%, with average prices advancing in the low-60% range. Bit shipments rose by only a low-single-digit percentage.
| Investor measure | Micron | CXMT |
|---|---|---|
| Monday share move | Dropped 4.3% to $881.60 | Surged 466% to 49 yuan |
| Equity value | $1.009 trillion | $487.73 billion |
| Capital signal | Roughly $45.0 billion wiped out | $8.6 billion raised in IPO |
| Revenue signal | Third quarter revenue reached $41.46 billion | Projects first-half revenue between 110 billion and 120 billion yuan |
The strong market reaction stems from the sector’s sensitivity to price. Even a slight drop in expected future DRAM prices can more than offset minor increases in shipment volumes.
Short-term factors are still favorable. “The memory market remains tight with price increases expected to continue through the end of 2027,” TrendForce analyst Ellie Wang said. Reuters
CXMT’s initial trading did not represent true price discovery. Just 6.73% of its expanded share capital was available for free trading. This small free float probably intensified demand and trading activity.
The risk from competition remains significant. CXMT is constructing facilities that may boost capacity to over 600,000 wafers per month. According to a source with knowledge of the plans, that production could surpass Micron’s capacity by 2030, Reuters reported.
CXMT lags behind top competitors in advanced AI memory, with its high-bandwidth memory tech trailing by around two generations. Export controls further constrain the company’s ability to obtain cutting-edge lithography tools.
Micron faced the challenge with robust margins. Revenue for the fiscal third quarter stood at $41.46 billion, and GAAP net income amounted to $28.24 billion. The gross margin increased to 85%. Chief Executive Sanjay Mehrotra described this as “the strategic value of memory in the AI era.” Micron Technology
The immediate outlook is now influenced by major technology clients. Their earnings reports this week will gauge if AI infrastructure investment remains strong enough to drive memory demand.
Risks: CXMT may accelerate its conventional DRAM output more quickly than anticipated, which could weigh on Micron’s margin gains led by pricing. Still, the risk could be delayed by export restrictions and CXMT’s lag in HBM technology.
For Micron shareholders, the scale-up of CXMT’s production is more significant than its initial valuation. Monday’s decline in shares anticipated a future increase in supply, rather than signaling an immediate drop in memory supply tightness.
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