--- title: "China's DRAM Giant Shakes Up Global Landscape: CXMT Soars in Debut, US Memory Chip Stocks Skid, Sandisk Nearly Halved in a Month" type: "News" locale: "en" url: "https://longbridge.com/en/news/293971718.md" description: "During Monday's trading session, Sandisk dropped over 10%, wiping out $170 billion in market value in a month; SK Hynix ADR fell 10%, and Micron Tech dropped over 7% at one point. Most institutions still believe that the leading advantages of Micron Tech, SK Hynix, and Samsung Electronics in the AI memory sector will be difficult to shake in the short term. Some analysts believe that the pullback in memory chip stocks offers new opportunities for positioning" datetime: "2026-07-27T21:56:09.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293971718.md) - [en](https://longbridge.com/en/news/293971718.md) - [zh-HK](https://longbridge.com/zh-HK/news/293971718.md) --- # China's DRAM Giant Shakes Up Global Landscape: CXMT Soars in Debut, US Memory Chip Stocks Skid, Sandisk Nearly Halved in a Month The spectacular debut of China's memory chip leader, CXMT, on the A-share market is becoming a new variable in the global memory chip sector. During Monday's US trading session, memory chip stocks plummeted, becoming the biggest drag on the broader market. Sandisk (SNDK) fell over 10% during the session, dropping about 14.6% when it refreshed its daily low in early trading. It has cumulatively fallen 47% from its historical high set on June 22, with its market value evaporating by approximately $170 billion in the past month. SK Hynix ADR (SKHY) fell about 10% at one point, while Western Digital (WDC) and Seagate Technology (STX) dropped over 9% and 8% respectively during the session. Micron Tech (MU) once fell over 7%. When refreshing daily lows in early trading, the Philadelphia Semiconductor Index, which tracks the overall performance of chip stocks, fell about 5%, significantly underperforming the three major US stock indices. The S&P 500 and Nasdaq only fell about 0.4% and 0.8% respectively when they refreshed their daily lows, while the Dow Jones Industrial Average maintained gains throughout the day. The market generally pointed the finger at CXMT, which listed on the STAR Market of the Shanghai Stock Exchange that day. The stock price of this largest Chinese DRAM manufacturer surged over 460% on its first day of listing, with its market value exceeding 3 trillion yuan, making it the new largest company by market capitalization on the A-share market. This has also led global investors to re-evaluate the competitive landscape of the DRAM industry in the coming years. ## Listing of China's DRAM Leader Triggers Global Revaluation of Memory Sector Regarding the sharp decline in US memory chip stocks on Monday, many foreign media outlets believe that the market's concern is not CXMT's short-term performance, but the potential changes in the global DRAM supply landscape in the future. Analysts believe that after completing the largest IPO in Asia this year, CXMT means the company has obtained more abundant capital support. Its ability to expand production, conduct technological R&D, and advance into high-end AI memory fields such as HBM is expected to strengthen. For global memory chip leaders that have already seen significant price increases, this means long-term competitive pressure is rising. Some comments pointed out that the market worries that with CXMT's financing completion, the release of new DRAM supply may accelerate in the future, thereby weakening the current market's optimistic expectations for continued rises in memory prices. Meanwhile, memory stocks such as Micron Tech, SK Hynix, and Sandisk have experienced significant gains previously. Against the backdrop of high valuations, any change in the competitive landscape can easily trigger profit-taking. Other comments believe that this round of pullback reflects more of a market repricing. Although HBM demand driven by AI remains strong, investors are beginning to rethink: if Chinese manufacturers continue to increase capacity and technological strength, will the traditional DRAM business enter a stage of intensified competition earlier than expected, thereby affecting industry profit margins? However, many analysts believe that the market reaction may involve some degree of overinterpretation. Currently, CXMT's products are still mainly concentrated in traditional DRAM fields such as DDR4 and DDR5, while the fastest-growing profit businesses for Micron Tech, SK Hynix, and Samsung Electronics come from AI memory products like HBM. Affected by US export restrictions, CXMT still faces high technical barriers to entering the high-end HBM market in the short term. Therefore, the landscape of the global AI memory market is unlikely to undergo fundamental changes in the short term. ## CXMT Surges on First Day, Capital Markets Bet on "Chinese Memory" CXMT's IPO itself has attracted global attention. The company raised approximately 57.9 billion yuan (about $8.6 billion) in this offering, setting a new record for IPO fundraising scale in Asia this year. On its first day of listing, Monday, the company's closing price rose 465.82% compared to the issue price, with a total market value reaching 3.28 trillion yuan. It surpassed Industrial and Commercial Bank of China to become the largest company by total market value on the A-share market, equivalent to twice the market value of Kweichow Moutai. Throughout Monday, CXMT's turnover exceeded 140 billion yuan, becoming the first individual stock in A-share history to break through 100 billion yuan in single-day turnover. Public information shows that CXMT was established in 2016 and is the largest DRAM chip manufacturer in China. It is also an important representative enterprise for China's independent R&D and mass production of DRAM. Currently, the company's products cover multiple fields including consumer electronics, PCs, servers, and automotive electronics, and it is continuously advancing the R&D of new products such as DDR5. Domestic media generally believe that CXMT's listing not only marks a new milestone for China's semiconductor industry but also indicates that capital markets are giving higher valuation premiums to domestic high-end manufacturing and "hard technology." The market expects that the raised funds will further support advanced process R&D, expand capacity, and improve the domestic memory industry chain. ## In the AI Era, HBM Still Determines the Winner However, from the perspective of the global competitive landscape, most institutions still believe that the leading advantages of Micron Tech, SK Hynix, and Samsung Electronics in the AI memory sector will be difficult to shake in the short term. The current explosion in demand for AI servers has made HBM one of the most scarce semiconductor products globally. Micron Tech and SK Hynix have almost monopolized the HBM supply for AI chip manufacturers such as Nvidia, and related businesses are the core drivers pushing the rapid profit growth of these two companies. Therefore, many analysts believe that Monday's sharp decline in memory stocks was more of an emotion-driven valuation adjustment rather than a turning point in industry fundamentals. As the construction of AI infrastructure continues to advance, demand for high-end memory is still expected to maintain rapid growth. Bernstein analyst Mark Li even believes that the sector's pullback that day provided new opportunities for positioning. He expects that by 2027-2028, global memory chip market revenue will still likely exceed $1.3 trillion, and data center construction in the AI era will continue to support the growth of DRAM and HBM demand. ### Related Stocks - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [688825.CN](https://longbridge.com/en/quote/688825.CN.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [SNDG.US](https://longbridge.com/en/quote/SNDG.US.md) - [SNDQ.US](https://longbridge.com/en/quote/SNDQ.US.md) - [SNDU.US](https://longbridge.com/en/quote/SNDU.US.md) - [SNXX.US](https://longbridge.com/en/quote/SNXX.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [07347.HK](https://longbridge.com/en/quote/07347.HK.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [09347.HK](https://longbridge.com/en/quote/09347.HK.md) - [WDC.US](https://longbridge.com/en/quote/WDC.US.md) - [STX.US](https://longbridge.com/en/quote/STX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md) - [01398.HK](https://longbridge.com/en/quote/01398.HK.md) - [601398.CN](https://longbridge.com/en/quote/601398.CN.md) - [600519.CN](https://longbridge.com/en/quote/600519.CN.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [WDCVV.US](https://longbridge.com/en/quote/WDCVV.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [SK Hynix earnings will signal what’s next for memory chip boom](https://longbridge.com/en/news/294101860.md) - [Why SK Hynix Shares Tumbled 11% After Q2 Profit Surged 557% to Record High](https://longbridge.com/en/news/294143832.md) - [SK Hynix to Mass Produce LPDDR6 in Second Half as ADR Price Drop Draws Attention](https://longbridge.com/en/news/294006863.md) - [Samsung MX reportedly considers Chinese DRAM for low-end phones in China](https://longbridge.com/en/news/293914720.md) - [Micron Stock (MU) Forecast – Why Analysts Remain Bullish Despite the Recent Sell-Off](https://longbridge.com/en/news/294240064.md)