The sell-off reflects concerns that China’s CXMT could emerge as a credible DRAM supplier, challenging the tight supply conditions supporting elevated memory prices. If CXMT achieves competitive yields, capacity and product quality at scale, additional supply could weaken pricing power and pressure margins at Micron, SanDisk and SK Hynix. However, a denser design alone does not guarantee immediate commercial-scale production or broad customer adoption. The key indicators are CXMT’s manufacturing execution, capacity expansion and market acceptance. Until these become clearer, memory stocks may remain sensitive to supply-disruption risks and changes in pricing expectations.