With Memory chips (DRAM) down 3.3%, this looks like a sector-led move rather than a company-specific surprise.
Memory chip stocks are trading lower in the pre-market session following reports that Chinese competitor ChangXin Memory Technologies (CXMT) is planning a significant expansion of its DRAM production capacity. This news has sparked concerns about a potential increase in future chip supply, which could lead to heightened competition and pressure on prices for major producers. The move also comes amid a broader reassessment of the semiconductor sector after a volatile July and recent comments from Apple about seeking to lower its memory costs.