The Motley Fool says CXMT's sales have grown more than sevenfold and argues investors should buy Micron stock. Wait, I need to correct that: the translation should be the Korean text only. Motley Fool는 CXMT의 매출이 7배 이상 성장했다고 밝혔으며, 투자자들이 Micron 주식을 매수해야 한다고 주장했다.

Shares of memory chipmaker Micron Technology (MU) have had a tough few months. At around $892 as I write, the stock is down about 26% from its late-June record close.

Then, on Oct. 30, China's largest maker of DRAM (dynamic random-access memory, the chips that store data while a phone, PC, or server is running) posted results that are hard to ignore. ChangXin Memory Technologies (SHSE:688825), better known as CXMT, said its third-quarter revenue climbed 613% year over year to around 118.7 billion yuan (about $18 billion). In other words, it sold over seven times as much as it did in the same quarter of 2025.

A rival growing this fast in DRAM deserves attention. But I think CXMT's report says more about memory prices than about Micron's future, and it doesn't change my view that Micron stock is a buy.

**CXMT's surge is mainly about prices**

CXMT gave a simple reason for the jump. It linked the growth to a global DRAM shortage, which lifted both the number of chips it sold and the prices it got for them.

How much of this comes down to pricing is clear from the margins. CXMT's gross margin hit around 89.5% in the third quarter, up about 2 percentage points from the second quarter. Net profit attributable to shareholders was around 54.4 billion yuan (about $8 billion), compared with a loss a year earlier. The pace is slowing, however. Revenue grew around 19% from the second quarter, after almost doubling from the first quarter to the second.

The same shortage is boosting Micron's results. In the fiscal fourth quarter of 2026 (the period ended Sept. 3), Micron's gross margin was 86.8%, up from 44.7% in the same quarter of fiscal 2025. When even a far smaller rival reports margins like these, it's arguably a sign that memory prices remain high across the industry.

**The size gap**

Even after its sevenfold jump, CXMT's last quarter was only about a third the size of Micron's. The U.S. memory maker's revenue hit $54.2 billion for its fiscal fourth quarter, and management expects about $61.5 billion for the current quarter.

Industry tracker TrendForce estimated that CXMT's share of global DRAM revenue rose to 9.5% in the second quarter, up from 7.6% in the first. Micron's share was 23.3%.

CXMT also doesn't yet compete much where Micron is growing fastest. The Chinese company has traditionally focused on consumer electronics. Its server memory modules, based on a new, denser chip design, are planned for launch by the end of 2026.

Micron, by contrast, now gets most of its sales from data centers. Its cloud memory and core data center units together brought in about $34.3 billion in fiscal Q4, or about 63% of revenue, up from about 54% a year earlier. The core data center unit alone grew 56% from the fiscal third quarter. The part of Micron that looks most like CXMT is its mobile and client unit, which sells memory for phones and PCs. That unit's revenue hit $13.1 billion in fiscal Q4, 14% more than in the fiscal third quarter.

That is still a big business, and it's likely where Micron will feel Chinese competition first.

**Still a buy?**

The bigger risk is the capacity CXMT can now afford to add. The company credited its own capacity build-out with some of its growth. After selling new shares in a public offering during the quarter, it finished September with around 285 billion yuan (about $43 billion) in cash.

Micron, which had about $73.5 billion in cash and marketable investments at the end of its fiscal year, sees the threat too. In its last annual report, it warned of "increasing competition and DRAM and NAND oversupply" linked to heavy investment by the Chinese government and state-affiliated firms such as CXMT.

Memory booms tend to end when new supply arrives, and a well-funded rival might bring that ending sooner.

Micron's stock price, however, seems to reflect much of that risk already. Micron earned $74.33 per share in fiscal 2026, so the stock trades at around 12 times earnings, even though management expects revenue to keep climbing this quarter. Investors appear to be bracing for profits to shrink.

Yes, CXMT might take more of the market for phone and PC memory over time, and Micron's margins likely won't stay around 87% forever. But for now, CXMT's report points to a shortage that is still lifting prices for both companies.

I'd buy Micron stock at today's price. I would, however, consider building a position bit by bit, because memory prices can turn fast.