Micron Shares Drop 4.88% as Samsung's HBM Price Cut Sparks Price War, Stock Ranks 29th in $3.2B Volume Surge

On July 31, 2025, Micron Technology (NASDAQ: MU) fell 4.88%, with a trading volume of $3.2 billion, marking a 71.38% increase from the previous day and ranking 29th in market activity. The decline followed a strategic move by Samsung to reduce prices on its HBM3E product, a high-bandwidth memory used in AI and machine learning applications. Samsung cited oversupply in the HBM market and limited success in securing contracts with Nvidia as key reasons for the price cut.

The price reduction by Samsung has intensified competitive pressure on Micron, which also produces HBM3E. Analysts at Wells Fargo highlighted that the move could erode profit margins for Micron by either forcing it to lower prices to retain market share or risk losing sales to Samsung. This dynamic creates a challenging environment for Micron, as both scenarios could negatively impact revenue and profitability. The firm warned that the price war may accelerate the convergence of pricing between HBM3E and standard DRAM, further compressing margins.

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