Memory stocks had a quick scare… and then a recovery. Shares of Sandisk $SNDK ( ▼ 1.43% ) and Micron $MU ( ▲ 0.92% ) dipped in premarket trading after reports that major PC makers are considering buying memory chips from Chinese suppliers for the first time. But by the open, investors seemed to calm down, and the stocks bounced.
The concern came from a Nikkei Asia report saying companies like HP $HPQ, Dell $DELL, Acer, and Asus are exploring Chinese memory sources as a backup plan during a historic supply crunch that’s sending prices soaring.
When prices spike, loyalties get flexible
Memory chips, especially DRAM, are in short supply globally. That’s a problem because they’re essential in everything from laptops and smartphones to AI data centers. With supply tight and prices rising, PC makers are starting to think less about who they usually buy from and more about who can actually deliver.
HP is reportedly qualifying products from China’s ChangXin Memory Technologies (CXMT) and could begin using its chips in non-US markets if shortages persist into mid-2026. Dell is said to be doing similar qualification work, worried that memory prices will keep climbing through next year.
Acer and Asus are also keeping the door open, with Asus even asking Chinese manufacturing partners to help source memory chips for certain notebook projects.
A new competitor in the mix
For established memory players like Micron $MU, this is less about one quarter of sales and more about long-term positioning. If Chinese suppliers gain credibility and pass qualification tests at major global brands, they could slowly chip away at market share — especially in price-sensitive or non-US markets.
Still, qualification doesn’t mean immediate large-scale orders. PC makers tend to move cautiously when adding new chip suppliers, especially in critical components like memory. For now, the move looks more like a contingency plan than a full pivot.
But in a world where AI demand is already stretching supply chains, even the hint of new competition from China is enough to make investors sit up straight — at least until the dip buyers show up.