Huo Xing Finance reports that on October 13, the memory chip sector continued to face heavy selling pressure. According to BIT (bit.com) market data, Micron closed down 3.88% on Monday, while SanDisk fell 5.97%; both stocks declined in six of the last seven trading days. Micron’s price has now dropped nearly 20% from its June high, nearing technical bear market territory. In South Korea, SK Hynix plunged 9% today, while Samsung Electronics’ decline widened to 7%. This correction is primarily driven by the withdrawal of buyback support and technological breakthroughs by Chinese competitors. Foreign investors have net sold Korean equities for five consecutive trading days, with the technology sector recording a single-day net outflow of approximately $1.3 billion—$782 million from SK Hynix and $415 million from Samsung. Meanwhile, the combined $40 billion (approximately 55 trillion KRW) buyback programs by Samsung and SK Hynix ended several weeks ahead of schedule, with Samsung’s buyback actually terminating on October 6. Following the cessation of buyback support, the KOSPI index has累计 declined over 10%. Although retail investors have absorbed some of the selling pressure, Goldman Sachs noted that their net buying volume is declining. On the competitive front, CXMT has announced key progress in developing the 4F² architecture for its next-generation DRAM and expects to launch DDR5 RDIMM server memory products by year-end, integrating this architecture with hybrid bonding technology. Compared to the mainstream 6F² architecture, the 4F² design theoretically reduces cell area by about one-third, increasing storage density by approximately 50% on the same wafer area and process node—heightening market concerns over future competition and supply expansion. Although the memory industry’s fundamentals remain strong, investors are beginning to price in the risk of peak profitability, fearing that synchronized capacity expansions by Chinese memory manufacturers and new Korean fabs between 2027 and 2028 could reverse the supply-demand balance. Goldman Sachs’ trading desk believes that concerns over peak earnings are suppressing valuations, and there are currently insufficient catalysts to drive further revaluation.
Memory chip stocks face continued sell-off amid end of buybacks and technological advances by Chinese competitors
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Summary
Memory chip stocks declined again as the Fear & Greed Index turned negative, with Micron and SanDisk dropping sharply on October 13. Six of the past seven days saw losses, while SK Hynix and Samsung also fell. On-chain data indicates worsening investor sentiment as buyback programs conclude and Chinese competitors like ChangXin advance in 4F² DRAM technology. Goldman Sachs warned of profit peaks and a potential supply-demand shift by 2028 due to new capacity coming online in China and South Korea.
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