Micron shares slide 10% this week; analysts see buying opportunity

Micron Technology shares fell about 4% on Friday, extending the weekly decline to 10%, as investors weighed competitive threats from Chinese memory chipmaker CXMT and concerns about the sustainability of the AI-driven boom. The selloff followed CXMT's announcement of a denser DRAM architecture that could lower production costs, with plans to introduce server memory products by late 2026. Analysts note CXMT does not directly compete in high-bandwidth memory for AI servers, and Citi estimates mass production is unlikely before 2028. KeyBanc expects DRAM prices to rise 15-20% quarter-over-quarter in Q4, supporting Micron's margins and earnings outlook. The company's 2026 forecast indicates AI demand will outpace supply, though risks remain if Chinese manufacturers scale production faster than expected and pressure industry pricing.