Shares of Micron Technology (NASDAQ:MU) fell 2% on Tuesday after reports emerged that rival Samsung Electronics plans to sharply reduce prices for high-bandwidth memory (HBM) chips, signaling more intense competition in the booming AI chip sector.
According to a report from DigiTimes, Samsung is launching a strategy to cut HBM chip prices by around 30% as it seeks to regain market share in the high-bandwidth memory segment. The move comes amid tight supply and surging demand for memory components critical to artificial intelligence applications.
The news rippled through the sector, with SK Hynix shares tumbling as much as 6.9% in trading.
HBM chips have become a cornerstone of the global AI infrastructure boom, enabling the high data transfer speeds required to train and run advanced models. Demand for these specialized memory components has grown rapidly as companies race to expand their AI capabilities.
Micron has been ramping up its AI-focused memory offerings to capture a larger slice of this expanding market. However, Samsung’s aggressive pricing could squeeze industry margins and intensify competition for market share in the high-performance computing segment.