Micron, SanDisk, SK Hynix fall on China chip fears; recovery uncertain

Micron, SanDisk and SK Hynix shares continued falling Thursday amid concerns over Chinese memory chip competition and a broader artificial intelligence selloff, with analysts seeing potential support from shareholder returns but warning a recovery may be harder than in past corrections. Micron shares dropped as much as 4.4% to $873.66 in early trading before recovering most losses, while SanDisk fell 3.5% and SK Hynix's US shares declined 3% after South Korean shares plunged 11%. The selloff began after reports that China's ChangXin Memory Technologies is developing a new memory chip, adding to worries about high AI valuations and interest rates. UBS analysts called the China threat likely premature, noting CXMT's product may remain a trial this year, while Micron's $35 billion buyback authorization could provide a floor after CHIPS Act restrictions lift December 9. However, JP Morgan expects a slower rebound than July's correction due to weaker dip-buying and increased leveraged ETF exposure.