Memory chip stocks plunge on oversupply fears as China rivals advance

Shares of memory chip makers plunged over five days, with SK hynix down 26%, Samsung Electronics down 22%, and Micron Technology down 11%, as investors feared oversupply driven by Chinese competitors' progress. The selloff was triggered by reports that China's CXMT plans to ship DDR5 memory with vertical transistors, a technological breakthrough seen as a threat. Analysts note the innovation may not immediately boost output due to low yields, but the market reacted negatively to the competitive signal. Industry leaders, including Elon Musk, have warned of a memory glut by 2028-2029, though analysts predict prices will remain elevated through 2027, with a gradual decline in 2028 still far above 2025 levels, supported by long-term contracts.