Micron Stock Rises 4% as Memory Chipmakers Recover After 15% Weekly Plunge Tied to China Competition Fears

NEW YORK — Shares of Micron Technology rose more than 4% on Monday, leading a rebound in memory chip stocks after a sharp sell-off last week driven by concerns about competition from China.

Micron shares were up $37.45, or 4.26%, at $916.29 as of 10:27 a.m. Eastern time on the Nasdaq. The stock had closed Friday at about $878.84.

The gain followed a 14.6% drop in Micron shares last week, according to Reuters.

Memory stocks rebound

Memory and storage stocks rebounded broadly on Monday. Sandisk rose more than 6%, while Western Digital and Seagate Technology also gained in early trading.

The recovery was part of a wider rally in semiconductor stocks after their steepest weekly decline in months. The iShares Semiconductor ETF fell nearly 12% last week, its worst week since March.

Lower Treasury yields and easing oil prices helped improve sentiment. Oil prices fell after President Donald Trump paused new sanctions on Russia's energy trade, easing inflation concerns.

China competition fears

Memory stocks were hit particularly hard last week after China's ChangXin Memory Technologies, or CXMT, unveiled an advanced DRAM chip design, raising concerns that Chinese manufacturers could expand supply and pressure prices.

The announcement triggered a sharp sell-off in memory stocks globally, including steep declines in South Korea's Samsung Electronics and SK Hynix, which helped trigger a circuit breaker on the Korean stock market.

Some analysts have argued that the threat is overstated in the near term, noting that leading memory makers retain significant technological advantages, particularly in high-bandwidth memory used in AI systems.

South Korea's Kospi index rose about 1% on Monday, a sign of improving sentiment toward memory chipmakers.

AI demand drives growth

Micron has been one of the biggest beneficiaries of the AI boom. Demand for high-bandwidth memory, which is used alongside AI processors in data centers, has surged, while prices for conventional memory chips have also risen sharply amid tight supply.

The stock has climbed dramatically over the past year, and despite last week's decline it remains near record levels.

Rates and AI spending in focus

Last week's broader sell-off was also driven by hotter-than-expected U.S. inflation data, which raised the possibility of further interest rate increases, and concerns about debt-funded spending on AI infrastructure.

Investors will closely watch quarterly results from major technology companies this week, including Meta Platforms, for signs of continued spending on AI data centers, a key driver of memory demand.

Investors will look for further signs of stability in memory prices and any additional developments from Chinese competitors. Micron's next quarterly report will provide an update on demand for high-bandwidth memory and its outlook for the AI market.