SanDisk stock plunged 11% on July 28, 2026, making it the worst-performing stock in the Russell 1000 as intensifying Chinese memory chip competition rattled the semiconductor sector. The decline marks the latest blow to the memory-storage company, which has fallen more than 45% from its record high in June, according to Robinhood data.
The selloff was triggered by the explosive debut of China’s ChangXin Memory Technologies (CXMT), which surged 466% in its Shanghai trading debut on July 27, becoming the country’s most valuable publicly listed company, according to CNBC and Reuters. The blockbuster IPO raised $8.6 billion, making it Asia’s largest initial public offering of 2026.
What has amplified the threat is Apple’s reported testing of CXMT’s DRAM chips for devices sold in China. The Financial Times reported on July 8 that Apple has begun evaluating the Chinese chipmaker’s memory for its products, signaling that premium manufacturers may be willing to use Chinese-made alternatives. This prospect of Chinese memory chips reaching top-tier customers has accelerated investor fears about pricing pressure and market share loss for incumbent suppliers.
The competitive threat extends across the memory sector. Micron Technology dropped 5%, SK Hynix fell 8%, and Western Digital declined 7% on the same day, according to reporting from 247wallst and BrokerChooser. The DRAM ETF also pulled back 4%, reflecting broader anxiety over memory-chip pricing and supply dynamics.
Citi Wealth analysts have flagged the emerging competitive risk. According to Benzinga, Citi noted that China’s domestic memory chip industry is gaining recognition and poses a risk to incumbent vendors like Micron, SanDisk, and Western Digital. The concern is that CXMT’s successful market entry could disrupt pricing power that these companies have enjoyed during a period of acute memory shortages.
SanDisk’s decline stands out against the backdrop of an extraordinary 2026. The company had surged more than 574% year-to-date through late July, riding a wave of demand for enterprise AI storage as data centers raced to expand capacity. However, the July selloff reflects investor concern that Chinese competition could eventually erode the supply-constrained advantage that has driven memory prices sharply higher.
The timing of CXMT’s IPO is significant. TrendForce data cited by insider finance sources show that DRAM contract prices rose 58–63% quarter-over-quarter in Q2 2026 after nearly doubling in Q1, and are forecast to face fresh pressure if Chinese capacity comes online at scale. That pricing environment, which has benefited SanDisk and peers, may be vulnerable if CXMT and other Chinese manufacturers gain traction with global customers.
Despite the selloff, some analysts have maintained bullish outlooks on memory stocks. Morgan Stanley, cited in Forbes reporting from July 23, maintains an Outperform rating on SanDisk, citing a persistent memory shortage that has “no quick fix.” However, the market’s reaction to CXMT’s debut suggests investors are beginning to price in the longer-term risk of Chinese competition eroding the shortage-driven pricing premium.
Sources
- CNBC — CXMT’s 466% market debut surge and impact on memory stocks
- Reuters — CXMT shares soared 466% on Shanghai debut, becoming China’s most valuable company
- Financial Times — Apple has begun testing CXMT’s DRAM chips for devices sold in China
- 247wallst — SanDisk sinks 12%, Micron drops 5%, SK Hynix falls 8% as CXMT IPO rattles memory stocks
- Benzinga — Citi Wealth notes Chinese domestic memory is gaining recognition, posing risk to SanDisk, Micron, Western Digital
- TrendForce (via Insider Finance) — DRAM contract price increases in Q2 2026 and forecast pressure from Chinese capacity
- Forbes — Morgan Stanley maintains Outperform on SanDisk citing persistent memory shortage
- Robinhood — SanDisk stock down 12%, extended decline of more than 45% from June record
