Micron (MU) has seen a notable drop recently. Just a while ago, the market was frenziedly betting on AI memory chips, but now, with news of a technological breakthrough from China’s CXMT, capital is starting to flow out. On October 13, Micron fell nearly 5%, and South Korea’s Samsung and SK Hynix didn’t fare much better. I find this decline worth examining. Previously, investors bought Micron based on the thesis that AI data center expansion would drive sustained growth in HBM demand, push memory chip prices higher, and ultimately trigger a surge in profits. This logic hasn’t been entirely invalidated yet. But the problem is that the memory chip industry is inherently highly cyclical. Once competitors catch up in capacity and technology, the market begins to worry whether supply and demand dynamics might shift again. Of course, CXMT’s technological progress doesn’t mean it can immediately challenge Micron’s high-end HBM business—there are still significant gaps in both technology and mass production capabilities. For now, I’m not rushing to buy the dip. Instead, I’m closely watching whether Micron can maintain its product pricing, HBM order volumes, and gross margins. As long as these metrics hold up, the market may simply be pricing in competitive risks ahead of time. But if earnings expectations start to be revised downward, then we’ll need to reassess the valuation entirely. What do you think—is this just a consolidation phase, or is the AI memory rally truly cooling off?