Memory Giant in Pre-Market Distress as Micron Tumbles Over 2% Approaching $1,000, Testing Bulls' Defense Line
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On October 12 Eastern Time, U.S. memory stocks, including Micron Technology, declined following CXMT’s announcement of next-generation 4F² DRAM technology and upcoming DDR5 server memory products by the end of 2026. This technological breakthrough threatens the pricing power and market share of traditional giants. Consequently, Micron’s stock dropped over 2% pre-market, approaching the critical $1,000 support level. A breach of this psychological threshold and Fibonacci support could invalidate its medium-to-long-term bullish structure, risking further downside toward the $900 level and potentially the July low of $740.
TradingKey - Micron Technology drops over 2% pre-market, approaching $1,000; can the bullish defense line hold this key level?
On October 12 Eastern Time, memory stocks in the U.S. market fell collectively in pre-market trading. Among them, memory giant Micron (MU) stock fell 2.15%, SK Hynix (SKHY) dropped 1.98%, SanDisk (SNDK) slipped 1.77%, and Western Digital (WDC) slid 1.75%.
The direct catalyst for this decline in memory concept stocks led by Micron Technology is ChangXin Memory Technologies' (CXMT) next-generation DRAM technology breakthrough. Over the weekend, Chinese DRAM giant CXMT officially announced key progress in its next-generation 4F² DRAM memory cell architecture and indicated that it will launch related DDR5 server memory (RDIMM) products by the end of 2026.
On October 10, CXMT achieved key progress in the R&D of its 4F² DRAM architecture. Dr. Kanyu Cao, President of the company, delivered a speech at the 4th Integrated Chips and Chiplets Conference, introducing CXMT's technological exploration and accumulation in DRAM devices, 4F² architecture, and hybrid bonding. He officially announced plans to launch a new generation of DDR5 RDIMM products integrating these advanced technologies by the end of the year. This implies that supply in the traditional general-purpose DRAM and server memory markets could increase, potentially impacting the market share and pricing power of traditional memory giants such as SK Hynix and Micron.
Following its breach of the $1,030 level in the previous trading session, Micron Technology's pre-market stock price retreated further, falling to a low of $1,003. The $1,000 mark serves as a critical psychological round-number defense line and a 0.5 Fibonacci retracement support level. If strong spot buying steps in between $1,000 and $1,015 after the opening bell to pull up a lower shadow, it will form an excellent short-term stabilization signal.
Micron stock price chart, source: TradingView
However, if Micron's stock price loses the $1,000 mark, it could rapidly drop toward the next defense line at $900. Furthermore, it would break the medium-to-long-term swing bullish structure of this AI memory leader, making a drop to the July low of $740 highly probable.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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