Micron, SK Hynix slide as Chinese chip competition and AI selloff pressure memory stocks

Shares of Micron, SanDisk, and SK Hynix continued falling Thursday amid concerns over Chinese memory chip competition and a broader artificial intelligence selloff, with analysts warning a recovery may be harder than in previous 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 followed reports that China's ChangXin Memory Technologies developed a new memory chip, adding to worries about AI valuations and high interest rates. Analysts see potential support from shareholder returns, noting Micron has over $35 billion in buyback authorization and CHIPS Act restrictions are set to ease on December 9. However, UBS analysts suggest CXMT's new technology may only be a sample this year, while JP Morgan expects a slower recovery than July's downturn due to weaker dip-buying and increased leveraged ETF exposure.