24/7 Wall Street
15 Oct 2026, 19:33 UTC · 1h ago
DRAM Giants Get Rich as China Builds a Threat
Impact · against what's priced in
The news is largely a non-event for Micron as the market has already discounted the risk of long-term pricing power erosion and is not paying for sustained scarcity beyond 2027. While CXMT's capacity expansion is a long-term threat, it confirms the cyclical fragility already reflected in Micron's current valuation.
- MU−0.05
Already priced in
- The price assumes
The idea that memory supply will remain a bottleneck through the end of the decade
CXMT's plan to grow wafer capacity by 83% to 550,000 per month by 2028 supports the market's current refusal to pay for the assumption that supply bottlenecks will persist through 2030.
What MU's price assumes · Sep 9
