Will Micron Stock Drop Further After China’s CXMT Chip Breakthrough

The Micron stock drop could run a bit further in the short term, as MU slid 3.88% to $989.04 on Monday and kept falling overnight after China’s CXMT chip breakthrough. Still, the Micron stock price target from Wall Street sits far above current levels, and the average Micron stock price prediction points to almost 60% upside, even as Micron stock China competition worries grow right now.

Also Read: Micron Stock’s 10-K Filing Reveals a 33.8% Valuation Gap

Micron Stock Drop: Can China’s CXMT Breakthrough Trigger More Losses?

What Did CXMT Announce?

At an industry event in Shanghai, CXMT management outlined progress on a denser memory-cell architecture, and the company plans to launch a server product using it before year-end. The CXMT chip breakthrough relies on a 4F² design meant to pack in more storage, an area where Samsung and SK Hynix are also racing ahead.

That news set off the latest Micron stock drop and brought competition back into focus. If CXMT manages to sell denser chips at competitive costs, customers get another credible supplier, and that could weaken Micron’s pricing power and squeeze margins even as memory demand grows, Barchart noted. At the time of writing, the threat is only a possible one, as the launch timeline doesn’t show how fast CXMT can ship real volumes or win wide adoption.

How Low Can MU Go After The Micron Stock Drop?

Monday marked a third straight losing session for MU, and the stock broke below the $1,000 mark and its 20-day moving average. Initial support sits around $959 to $964, and MU needs to win back the $1,019 to $1,042 range to ease the near-term pressure.

Overnight trading pushed shares down another 2.73% to $962.08, so that support zone is already in play. Over five sessions, the Micron stock drop now adds up to just over 7%, and broader memory stocks also slipped as the market weighed AI demand against high valuations.

The pullback still looks small next to the rally. MU remains up more than 246% this year, and the Micron stock drop has only erased a small slice of those gains so far.

What Is The Micron Stock Price Target Now?

Analysts aren’t letting the Micron stock drop shake their view. On October 7, D.A. Davidson analyst Gil Luria lifted his Micron stock price target to $3,000 from $2,100 and kept a Buy rating. Speaking to CNBC, Luria had this to say:

“The stock has gone up only on earnings growth. The multiple expansion hasn’t happened yet.”

Micron’s latest results back that view up. The company posted $54.23 billion in Q4 revenue on September 30 and guided for $61.5 billion for the current quarter. CEO Sanjay Mehrotra stated:

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027.”

Mehrotra also said Micron has signed 26 long-term customer agreements covering more than 35% of its revenue through 2030.

The consensus rating sits at “Strong Buy,” with a mean Micron stock price target of about $1,563, and the options market’s Micron stock price prediction hints at a rally of more than 13% through year-end. Micron’s plan to spend about $25 billion on capex in the first half of fiscal 2027 is a risk to keep in mind, though.

So, will the Micron stock drop continue? Pressure from Micron stock’s China competition could linger for a while, but the CXMT chip breakthrough still has to prove itself at scale, and the Micron stock price prediction from most of Wall Street stays bullish for now.