Micron Technology shares fall as Chinese competition and upcoming production capacity weigh on market outlook
Micron Technology shares fell 3% on Monday as investors evaluated rising competition from China's ChangXin Memory Technologies. The Chinese firm is considering a second Beijing facility that could more than double its monthly wafer output, potentially pressuring global memory suppliers and making it harder for Micron Technology to maintain pricing power. While Micron Technology has benefited significantly from the booming demand for artificial intelligence compute, the stock has sold off as much as 39% from its high. This decline is driven by concerns over future returns on AI spending and a looming oversupply of memory chips as new production capacity comes online. Micron Technology plans to spend over $250 billion on manufacturing capacity over the next decade, while competitors like SK Hynix and Samsung are investing heavily in new fabrication plants. Analysts expect Micron Technology earnings to peak in 2028, with a fair estimate of the stock price reaching approximately $1,000 by mid-2028.