Memory stocks slide as China's CXMT reports progress on rival memory design

What happened

Memory and storage stocks fell in Monday premarket trading after Chinese memory chip maker CXMT said it had made progress developing a rival product design that can store more data. Micron dropped 2.1% and SK Hynix declined 1.5% ahead of the open; Sandisk slid 1.8%, while hard-disk makers Seagate and Western Digital fell 1.1% and 1.4%, respectively.

Who’s affected

• MU (Micron): -2.1% premarket; most direct read-through to US memory pricing power
• SK Hynix: -1.5%; HBM leader exposed to new supply
• SNDK (Sandisk): -1.8%; NAND/memory-card read-through
• STX (Seagate), WDC (Western Digital): -1.1% / -1.4%; storage adjacent
• Broader semiconductor sector: sentiment overhang into ASML/TSMC earnings week

Sources

barrons.com