Micron Technology shares fall on China chip concerns, AI sector selloff

Micron Technology (NASDAQ: MU) shares dropped 4.4% in morning trading on Friday to $893 as concerns about Chinese competition and broader sector weakness weighed on the memory chipmaker as well as a broader selloff in the AI sector.

The decline was driven by renewed worries about ChangXin Memory Technologies' reported DRAM advancement. The Chinese company announced a new 4F2 data center chip architecture targeted for launch before the end of the year. Traders viewed the development as a potential near-term challenge to Micron's position in the high-end DRAM market.

The stock also faced pressure from continued weakness following Samsung Electronics' quarterly results from the previous session. The South Korean company's earnings missed analyst expectations despite posting record profits. The results raised expectations for what memory sector companies must deliver to support current valuations, leading investors to reduce positions across DRAM and NAND manufacturers.

SK Hynix shares also declined in Seoul trading, indicating the selloff affected the broader memory chip sector rather than reflecting issues specific to Micron's operations.

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