The sell-off in chipmakers Micron Technology and SK Hynix intensified in Tuesday’s trade on October 13, amid growing concerns over competitive risks and the sustainability of the AI-led rally.
Micron shares have dropped another 6% to an intraday low of $929, extending its losses for a second consecutive session. SK Hynix shares, which had fallen 4% in the previous session, crashed another 4.4%, hitting their lowest level since late August
Meanwhile, other major chip stocks, including Nvidia, Broadcom, Advanced Micro Devices (AMD), Marvell Technology, and Intel, were trading modestly higher after Monday's crash.
The accelerated selling in Micron and SK Hynix followed a report that Chinese rival CXMT had made progress in developing memory technology that the two companies are also working on.
CXMT aims to introduce a new server memory product based on the architecture by the end of 2026, company president Cao Kanyu said at an industry event in Shanghai over the weekend.