- MU slid 3.88% to $989.04 on Monday, then fell another 2.73% overnight to $962.08 as CXMT’s chip breakthrough intensified China competition worries.
- CXMT plans to launch a denser 4F² server product before year-end, but its volume production and adoption remain unproven.
- Wall Street still rates Micron a Strong Buy with a mean price target near $1,563, implying roughly 60% upside.
At an industry event in Shanghai, CXMT outlined progress on a denser memory-cell architecture using a 4F² design meant to pack in more storage, an area where Samsung and SK Hynix are also racing ahead. The company plans to launch a server product based on it before year-end, while MU slid 3.88% to $989.04 on Monday, extending a third straight losing session for Micron.
Overnight trading pushed shares down another 2.73% to $962.08, bringing the five-session drop to just over 7%. The stock fell below the $1,000 mark and its 20-day moving average, with initial support at $959 to $964 and a need to reclaim the $1,019-to-$1,042 range to ease near-term pressure.
Consequently, competition worries are back in focus: if CXMT sells denser chips at competitive costs, customers would gain another credible supplier, potentially weakening Micron’s pricing power and squeezing margins. However, the launch timeline does not show how quickly CXMT can ship real volumes or win wide adoption, and the pullback remains small next to Micron’s 246% gain this year.
Meanwhile, Wall Street remains bullish. On October 7, D.A. Davidson analyst Gil Luria raised his Micron price target to $3,000 from $2,100 and kept a Buy rating, telling CNBC: “The stock has gone up only on earnings growth. The multiple expansion hasn’t happened yet.”
Micron posted $54.23 billion in fiscal Q4 revenue and guided to $61.5 billion for the current quarter, while CEO Sanjay Mehrotra said: “Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027.” The consensus rating remains Strong Buy, with a mean Micron price target near $1,563 and options-market expectations of more than 13% upside through year-end.
Mehrotra also noted that Micron has signed 26 long-term agreements covering over 35% of revenue through 2030. One risk is Micron’s plan to spend roughly $25 billion on capital expenditures in the first half of fiscal 2027.
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