The memory chip sector experienced a sharp sell-off, with the DRAM ETF down over 11%, driven by multiple sector-specific concerns. The successful and massive IPO of Chinese DRAM manufacturer CXMT has ignited fears of increased global competition and future price pressures. This was compounded by a Credit Suisse report suggesting that storage chip prices are nearing their peak due to weakening demand from consumer electronics manufacturers. Broader anxiety about a potential slowdown in AI-related capital expenditures from major tech companies ahead of their earnings reports also contributed to the negative sentiment.