From 24/7 Wall St. · Alex Sirois · · 1m
Intel Vs. Micron: Who Is More Exposed By Chinese Rival CXMT's Progress
CXMT's server memory launch threatens Micron more than Intel.
In brief
CXMT's server memory launch threatens Micron more than Intel. CXMT's new server memory product could hurt Micron's pricing power more than Intel's PC business. Originally reported by 24/7 Wall St..
CXMT's Server Memory Launch
CXMT will launch a new server memory product before the end of 2026 using a denser 4F square design.
“CXMT, also known as ChangXin Memory Technologies, says it will launch a new server memory product before the end of 2026 using a denser 4F square design.”
Micron's AI-Fueled Revenue
Micron's fiscal Q4 revenue reached $54.23B, up 379.3% YoY, with non-GAAP gross margin of 87.0%.
“Micron's fiscal Q4 revenue reached $54.23B, up 379.3% YoY, with non-GAAP gross margin of 87.0%.”
Intel's PC Market Decline
Intel expects PC consumption to fall low double digits percent for all of 2026, impacted by rising memory prices and constraints.
“Intel's management expects PC consumption to fall low double digits percent for all of 2026, impacted by rising memory prices and constraints.”
CXMT's Threat to Micron
CXMT's added capacity targets DRAM pricing, which Micron sets through high margins.
“CXMT's added capacity takes aim at exactly that pricing.”
Micron's Take-or-Pay Contracts
Micron has signed 26 Strategic Customer Agreements covering over 35% of revenue through 2030, all with take-or-pay volumes.
“Micron has signed 26 Strategic Customer Agreements covering over 35% of revenue through 2030, all with take-or-pay volumes.”
Intel's Exposure to Cheaper Chips
If CXMT supply grows, cheaper DRAM could lower PC and server costs and help Intel's client business recover.
“Intel's exposure runs in the other direction. If CXMT supply grows, cheaper DRAM could lower PC and server costs and help Intel's client business recover.”
The main idea
CXMT's new server memory product could hurt Micron's pricing power more than Intel's PC business.
