Shares in semiconductor and memory giants — SK Hynix, Samsung, Micron, AMD, and SanDisk — suffered a sharp plunge over several sessions, erasing part of their year-to-date gains. The main trigger was the IPO of CXMT (ChangXin Memory Technologies) on the Shanghai STAR Market, which surged over 460 % on its first day, reaching a valuation of over 500 billion dollars and signaling a massive ramp-up in Chinese DRAM production capacity. Investors fear that a Chinese manufacturer could undercut prices and erode margins for market leaders SK Hynix, Samsung, and Micron, especially after reports that Apple is testing CXMT DRAM chips. The market is also concerned about China’s domestic production of DUV lithography machines, reducing its reliance on Western equipment. For patient investors, this sector correction could create attractive entry points over several years, as AI-driven demand for HBM memory and storage remains strong and the fundamentals of leading companies are intact.
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