Meet the Micron and SK Hynix Competitor That Just Rocketed 466% Higher in 1 Day
How big a threat is the competition after receiving billions in fresh capital?
Overview
It's not unusual for an IPO to "pop" on its first day of trading. Underwriters typically price new issues conservatively to guarantee adequate demand. But newly listed shares of Chinese DRAM supplier ChangXin Memory Technologies (SHSE: 688825), better known as CXMT, rocketed 466% higher on their first day of trading on the Shanghai exchange.
That price performance is just another indication of the excitement around memory chip stocks like Micron Technology (NASDAQ: MU) and SK Hynix (NASDAQ: SKHY). And investors in leading memory chipmakers may be wondering how the Chinese competitor could affect them after its recent capital injection.
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Originally published at www.fool.com.