Memory Stocks Drop as China’s CXMT Surges in IPO
Major memory stocks are falling sharply amid concerns over competition from ChangXin Memory Technologies (CXMT), a Chinese DRAM manufacturer that surged more than 500% on its Shanghai STAR Market debut. SanDisk dropped 12%, Micron fell 5%, and SK Hynix declined nearly 8%. CXMT’s IPO raised between $8.6 billion to $9.8 billion, valuing the company at around $540 billion. CXMT is currently the world's fourth-largest DRAM producer with an 8% market share. While it faces U.S. export controls and political headwinds—such as being listed by the Pentagon for alleged military ties—it has already begun testing its chips with major clients like Apple, raising fears of broader adoption. The selloff is also fueled by profit-taking after a strong year-to-date rally in memory stocks. SanDisk had gained 505% YTD and Micron rose 223%. The Roundhill Memory ETF (DRAM) dropped 4%, highlighting the sector-wide impact.
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Topics: china_competition cxmt_ipo memory_stocks profit-taking