Over the past five days, shares of major memory manufacturers have seen a significant decline. SK hynix stock dropped by 26 percent, Samsung Electronics shares fell by 22 percent, and Micron Technology saw a decrease of 11 percent.
The market reacted to concerns regarding potential oversupply by 2029 and the technological progress of Chinese competitor CXMT. The company intends to begin mass shipments of DDR5 memory featuring vertical transistors.
Analysts note that while the technological advancement is significant, it does not guarantee immediate volume growth due to potential yield issues. Experts from South Korea and executives from Broadcom and Intel have warned about a market glut by 2029.
Counterpoint Research forecasts that DRAM prices will fall by 23 percent in 2028 compared to 2027, yet remain 230 percent higher than 2025 levels. Long-term contracts are expected to mitigate the severity of the potential downturn.
