Micron Shares Plunge 13% as DRAM Prices Surge and CXMT Booms
Micron Technology shares plunged 13% over two sessions after reports of zero AI chip deals during the Trump-Xi summit and uncertainty over Chinese approval for H200 purchases. DRAM pricing may climb 60% in Q2 as competitors like CXMT post 700% revenue growth, prompting firms to raise price targets.
1. Two-Day Selloff from Summit Uncertainty
Micron shares fell 6.6% on Friday and 6% on Monday, marking a 13% two-day decline. The drop followed reports that no AI chip sales closed at the Trump-Xi summit and uncertainty over Chinese government approval for its H200 accelerator.
2. Analysts Raise Targets on Pricing Strength
Major analysts including Citi and Melius Research lifted price targets, citing expected DRAM and HBM pricing strength through 2027. They argue that stretched technical momentum will eventually realign with robust end-market demand.
3. DRAM Upcycle and CXMT’s 700% Revenue Surge
Shortages in conventional DRAM doubled prices in Q1 and could drive another 60% increase in Q2, fueling a broader memory upcycle. Competitor CXMT posted a 700% revenue surge to 50.8 billion yuan, highlighting intensifying competition and pricing pressures.