Sandisk Stock Drops on Chinese Memory Chip Progress
Sandisk shares fell 6.6% after ChangXin Memory Technologies announced advancements in DRAM storage density for the AI data center market.
Shares of Sandisk fell 6.6% on Monday morning following reports that ChangXin Memory Technologies (CXMT), a Chinese DRAM memory chip maker, has made progress on 4F square technology to increase storage density. CXMT intends to release a new product targeting the AI data center market later this year.
While Samsung and SK Hynix are pursuing similar technological advances, the news triggered investor concern over Chinese competition in the memory chip sector. Analysts noted that the stock drop may be based on a misunderstanding of the market, as Sandisk specializes in NAND memory rather than the DRAM produced by CXMT.
Further reports suggest CXMT may struggle to compete on cost. Apple abandoned plans to purchase chips from the company in July after learning of its pricing demands, indicating that CXMT's pricing may be higher than that of its Korean competitors.
