Memory chip sell-the-news wave: CXMT plunges 8% despite forecasting 8x revenue jump; Samsung slides after record profit outlook; Wells Fargo slashes WDC target to $450
What happened
ChangXin Memory Technologies (CXMT) plunged nearly 8% on the Shanghai exchange Monday despite forecasting an eightfold jump in nine-month revenue to 265-270 billion yuan (~$39.6-40.4B) and a swing from a net loss to 131-132.5 billion yuan in net profit, per the Wall Street Journal — a stark sell-the-news reaction. Samsung shares slid earlier after the Korean chip giant forecast a record $80 billion in quarterly operating profit, which similarly failed to lift sentiment. Meanwhile, Wells Fargo cut its Western Digital price target to $450 from $730 following last week's selloff, and commentary is increasingly explicit that investors are booking profits and "calling the top" in memory. The moves come just as U.S. memory earnings season opens, with Western Digital reporting Thursday and SanDisk next week.
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Start your free 14-day trialWho’s affected
- WDC: reports Q1 results Thursday Oct 22 into a lowered bar; Wells Fargo cut its price target to $450 from $730 after last week's selloff
- SNDK: reports next week; led Monday's semiconductor rebound (+6%) but faces the same earnings scrutiny
- MU: memory incumbent exposed to both CXMT's technology catch-up and investor profit-taking
- Samsung / SK Hynix: Korean memory leaders under pressure from Chinese competition and top-calling sentiment
- DELL and PC ecosystem: memory pricing is the swing variable for AI-server margins (the core of the Dell margin debate)