Memory Stocks Fall Third Day as Rosenblatt Calls CXMT Sell-Off Overblown

what happened

Memory-chip stocks kept sliding on Wednesday and are on track for a third straight session of losses, Stocktwits reported. Investors are worried about rising competition from China's ChangXin Memory Technologies (CXMT). Rosenblatt analyst Kevin Cassidy, however, said the sell-off has gone too far and that the immediate threat is being overstated. His view came after CXMT President Cao Kanyu said the company aims to launch a next-generation DDR5 RDIMM server memory module by the end of 2026. Cassidy added that the market is ignoring structural shifts in DRAM demand.

At the time of writing, Micron Technology (MU) was down more than 1%, SK Hynix (SKHY) more than 3%, and SanDisk (SNDK) 2%. Western Digital (WDC) and Seagate Technology (STX) were also lower. Rosenblatt kept Buy ratings on Micron and SK Hynix.

why it matters

Per Stocktwits, year to date Micron is up about 230%, Western Digital 116% and Seagate 169%, while SK Hynix is down 10% and the Roundhill Memory ETF (DRAM) is up 86%. Mizuho's Jordan Klein, cited by Investing.com, said CXMT's news did not change his near-term view, and Jefferies, per Investopedia, questioned whether the technology is commercially viable.

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