$MU Slides 10% on the Week Amid Chinese Competition Fears, Analysts Call Drop Overblown

Shares of Micron Technology ($MU) declined roughly 3% on Friday, extending weekly losses to more than 10%. The downturn followed an announcement from Chinese chipmaker ChangXin Memory Technologies (CXMT) detailing a next-generation DDR5 RDIMM for data centers, targeted for launch by late 2026, which stirred fresh competitive concerns across the memory sector.
Wall Street analysts pushed back against the market reaction. Rosenblatt analyst Kevin Cassidy reiterated a Buy rating, calling the selloff overblown and arguing it overstates near-term threats while ignoring structural DRAM demand. Fundstrat's Kent Fung also framed the pullback as a buying opportunity, emphasizing that CXMT's memory technology targets conventional server DRAM rather than the high-bandwidth memory (HBM) critical to AI servers.
Despite the recent slump, $MU remains up approximately 215% year-to-date and trades at 11.9 times trailing earnings, compared to higher multiples across peers like $MRVL (77.8x) and $CDNS (64.4x).
The pullback follows strong fiscal fourth-quarter results reported on Sept. 30:
- Adjusted EPS: $33.42 (vs. $31.61 expected)
- Revenue: $54.23 billion (vs. $51.07 billion expected)
- Q1 Revenue Guidance: ~$61.5 billion (vs. $57.0 billion expected)
- Q1 EPS Guidance: $38.15 (vs. $35.40 expected)