Finance
📉China's CXMT memory chip breakthrough sparks $108B selloff
The Rundown: Chinese chipmaker CXMT announced progress on 4F² DRAM, triggering a massive selloff in Micron, SK hynix, and Sandisk.
The details:
- ●CXMT's 4F² DRAM progress erased $108 billion in market value across Micron, SK hynix, and Sandisk.
- ●Elon Musk and Milk Road analyst Melvin debated whether the threat is overblown, with Melvin arguing the market overreacted.
- ●Both sides see HBM (high-bandwidth memory) as the key moat for Western chipmakers.
- ●Milk Road's Vincent notes Micron looks cheap at ~6x forward earnings.
Why it matters: Semiconductor markets are hypersensitive to geopolitical shifts, and this selloff shows how quickly sentiment can turn on China's scaling ability. For investors, the debate between near-term noise and long-term structural threats is critical — but also an opportunity to buy quality names like Micron at depressed valuations.
📰 Source: Milk Road AI