Samsung’s Price Cut Sparks Memory Market Turmoil, Micron Shares Tumble
Micron Technology's stock plunged 5.2% Thursday morning after Samsung Electronics slashed prices on cutting-edge HBM3E memory chips. The Korean tech giant's aggressive move comes amid weaker-than-expected demand from Nvidia and oversupply in the high-bandwidth memory market.
Samsung's pricing strategy effectively declares war in the AI memory sector, forcing competitors like Micron into a no-win scenario. Analysts warn the price cuts will erode premium margins between specialized HBM3E and conventional DRAM chips by late 2025.
The development underscores growing pains in the AI hardware boom. As memory manufacturers race to capitalize on artificial intelligence demand, inventory gluts and price competition now threaten near-term profitability across the sector.
