Micron Technology Shares Sink for Fourth Straight Session

Micron Technology Shares Sink for Fourth Straight Session

Micron Technology MU shares fell 4% in Tuesday morning trading as investors assessed the growing capabilities of Chinese memory-chip producers and a broader retreat across semiconductor stocks.

China's ChangXin Memory Technologies is reportedly developing server memory using a 4F cell design, which allows more memory cells to fit within a given chip area. The product could reach the market later this year, potentially adding competition as artificial intelligence infrastructure spending drives demand for memory components.

The competitive picture is also changing in NAND flash memory, used for data storage. Counterpoint Research said China's Yangtze Memory Technologies ranked third globally by NAND shipment volume in the second quarter and is preparing for a potential listing on Shanghai's STAR Market.

The sector's decline extended beyond Micron, with the Philadelphia Semiconductor Index losing about 3% during the session. Mizuho analyst Jordan Klein said heavy investor exposure to AI-related stocks has left the trade vulnerable to sharp swings. Although Chinese suppliers are advancing in conventional memory, more complex stacked high-bandwidth memory used in AI systems may present a greater technical challenge, according to comments cited in the report.