Nanya Technology Corp

Memory stocks are facing a fresh test as pricing momentum cools ahead of Micron Technology's earnings on Wednesday. Sara Awad of Tech Contrarians said the performance of memory players without significant high-bandwidth memory exposure could offer a better read on non-AI memory demand and pricing, which will be critical to Micron's gross-margin outlook. Among the names Awad highlighted, WT Micro reported August sales growth of only 8%, while Nanya Technology posted record August sales of NT$44.7B but monthly growth slowed to 2% from 49% in July, and Macronix International recorded a roughly 5% monthly increase in August, a slowdown from July. Awad noted that DRAM average selling prices could rise only 13%-18% in Q3, according to TrendForce, compared with roughly 50%-60% growth in Q2, while additional Chinese supply is coming online, with CXMT expected to reach roughly 20,000 wafer starts per month by year-end. Micron guided for an 86% gross margin last quarter after reporting 84.6%, and Awad said the market could react negatively if the company fails to guide for another increase.

CXMT Corp. is set to become the biggest China-listed company on its first trading day after raising 66.6 billion yuan in a near-record initial public offering. The company, formerly known as ChangXin Memory Technologies, sold 6.688 billion shares at 8.66 yuan apiece, with the retail portion 212 times oversubscribed as individual investors placed 9.4 million orders worth 7.07 trillion yuan. The IPO price implies 2.4 times book value, a 56% discount to the average price-to-book ratio of global DRAM peers SK Hynix, Micron Technology, and Nanya Technology, and a 77% discount to Chinese chipmakers SMIC and Hua Hong Grace Semiconductor. A perpetual futures contract on the Hyperliquid blockchain tied to the expected share price traded at about five times the offer price, implying a valuation of roughly $428 billion. A gain of around 330% would vault CXMT past Industrial and Commercial Bank of China's 2.6 trillion yuan market value for the top spot, with no daily trading limits during the first week.