Micron shares drop 8% after reports of rising competition from Chinese memory-chip makers, dragging peers lower.
Micron Technology (MU) fell 8% to $903.50 in early trading Wednesday, pulling down Intel (INTC), AMD (AMD), and Marvell (MRVL) by 6% to 7%. The iShares Semiconductor ETF (SOXX) declined 4% to $546.72 amid a broader sector selloff.
The drop follows Micron’s recent rally after strong June earnings, but concerns over intensifying competition from Chinese DRAM producers like CXMT have spooked investors. Apple is reportedly testing chips from CXMT, signaling potential long-term pressure on Micron’s memory business.
Micron guided for $50 billion in FQ4 revenue, though markets now price a 72% chance the stock hits $840 by July. The selloff reflects fears of margin erosion as Chinese rivals gain market share.