Micron Drops 9% as ChangXin IPO Revives China Fears and AI Spending Doubts
Updated
Updated · The Motley Fool · Jul 28
Micron Drops 9% as ChangXin IPO Revives China Fears and AI Spending Doubts
2 articles · Updated · The Motley Fool · Jul 28
Summary
Micron fell 9% by 2:40 p.m. ET Tuesday, sharply underperforming a 0.3% rise in the S&P 500 while the Nasdaq slipped 0.1%.
ChangXin Memory Technologies' Shanghai IPO on Monday renewed fears that Chinese memory suppliers will undercut U.S. and Korean rivals and pressure chip prices and earnings.
AI skepticism widened the sell-off as investors questioned whether hyperscalers' rising capital spending—after Alphabet again lifted capex guidance—will generate adequate returns.
Fed uncertainty added pressure, with traders bracing for Wednesday's rate decision after Citadel Securities warned markets may be underestimating a hawkish shift.
The drop extends a broader multi-day global chip retreat that began in Asia and Europe, with memory and storage names taking the hardest hit.