Micron shares tumble as DRAM rival CXMT plans $8.55B IPO

Shares of Micron Technology fell sharply on Wednesday, July 15, 2026, shedding billions in market value as investors reacted to a major fundraising effort by a Chinese competitor and broader concerns about future memory chip supply. The stock dropped 8.4% to $900.78 by late morning trading, erasing approximately $94 billion in market capitalization.

The immediate catalyst was news that ChangXin Memory Technologies (CXMT) is preparing an initial public offering on Shanghai's STAR Market. The Chinese DRAM manufacturer is set to raise up to 66.6 billion yuan, or about $8.55 billion, nearly double its initial target. This gives CXMT an implied equity valuation of around $85.6 billion. Investors are concerned that the massive capital infusion could accelerate DRAM production expansion, potentially alleviating a global supply crunch that has driven Micron's recent profitability.

Micron's business is heavily reliant on DRAM, which accounts for roughly 80% of its revenue, including high-bandwidth memory (HBM) used in artificial intelligence servers. The company reported stellar results for its fiscal third quarter, ended May 28, with revenue of $41.46 billion and net income of $28.24...