From Startup Fortune · · 1m 20s
Memory Chip Stocks Slide as CXMT Targets Server Memory
CXMT's server memory move deepens chip stock selloff amid Hock Tan's casino warning.
In brief
CXMT's server memory move deepens chip stock selloff amid Hock Tan's casino warning. CXMT entering server memory threatens high-margin chip stocks after Hock Tan's casino remark. Originally reported by Startup Fortune.
Memory Stocks Slide
Western Digital, SanDisk, Seagate and SK Hynix fell for a second straight session as China's CXMT said it's moving into server-grade memory.
“the most profitable corner of an industry wall street thought was untouchable”
CXMT Targets Server Memory
CXMT disclosed progress on a new denser chip architecture for server memory, the high-margin segment Samsung, SK Hynix and Micron have kept to themselves.
“the kind of advance that lets a manufacturer pack more data into the same physical footprint”
Server Memory Profitability
Server memory carries premium pricing with tight supply and high qualification bar, unlike consumer DRAM with thin margins.
“supply has been tight and the qualification bar has been high”
CXMT's Rapid Rise
CXMT's second-quarter 2026 dram revenue share reached 9.5% according to trendforce, making it the fourth global dram supplier.
“cxmt is the no. 4 global dram supplier”
Apple Testing CXMT Chips
Apple reportedly testing cxmt memory chips for chinese devices amid ai-driven demand for high-bandwidth memory.
“as ai-driven demand for high-bandwidth memory diverted production away from consumer-grade dram”
Samsung and SK Hynix Drop
Samsung posted its steepest one-day drop since october 2008, down 13.39%, with sk hynix close behind at 12.83%.
“after china's cxmt claimed a dram breakthrough that compounded hock tan's casino remark”
Hock Tan's Casino Warning
Broadcom CEO Hock Tan warned ai investors 'have no clue what they are investing in' and that expectations are 'almost like they are in a casino'.
“it's almost like they are in a casino”
What to remember
CXMT entering server memory threatens high-margin chip stocks after Hock Tan's casino remark.
