Memory chip stocks, including SK Hynix, Samsung, and Micron, have seen significant declines this week, falling 26%, 22%, and 11% respectively. The sell-off is driven by concerns over increasing competition from China and potential market oversupply by 2029.

China's ChangXin Memory Technologies (CXMT) announced plans for a new server memory product, sparking fears that Chinese firms could gain global market share. However, analysts like Ben Barringer of Quilter Cheviot and Kevin Cassidy of Rosenblatt Securities question CXMT's ability to scale production of such advanced technology.

Separately, a South Korean media report cited experts, including Professor Hwang of Seoul National University and Ahn Ki-hyun of the Korea Semiconductor Industry Association, who anticipate a "flood of new supply" by 2029, potentially ending the current "supercycle" by 2030. Elon Musk also commented on the report, stating that China "will be making a LOT of RAM in 2028."

Despite these concerns, Counterpoint Research analyst Jeongku Choi suggests the memory market is entering a "New Normal" era, with long-term agreements potentially mitigating sharp declines in future down cycles, even as DRAM prices are expected to fall by 23% in 2028 compared to 2027.