Memory Stocks Slide as China’s CXMT Targets Server Memory Market

SK Hynix shares fell 5% and Micron dropped 3% after China's CXMT signaled it is targeting server memory, the highest-margin segment driving AI chip profits. Western Digital declined 4% in the selloff. The Roundhill Memory ETF fell 4%, while the broader QQQ tech fund dropped just 2%, confirming the selling is concentrated in memory stocks. Micron CEO Sanjay Mehrotra said demand will exceed supply through 2027 and 2028, with over 75% of next year's output already committed. The slide began October 12 after CXMT disclosed progress on a denser chip design, and SK Hynix has fallen 22% over the past month. SK Hynix reported Q2 FY2026 revenue of 79.32 trillion Korean won, up 256.8% year over year.