Musk said China is advancing in LPDDR5 and LPDDR6, while HBM and 3D-stacked memory are harder challenges.
- Memory and storage stocks fell after CXMT outlined a DDR5 server-memory product using a 4F square design.
- Musk said SpaceX puts 10 times more mass into orbit than the rest of the world.
- In August, Musk said memory output was growing 20% a year, while demand rose 200% or more.
Shares of Space Exploration Technologies (SPCX) edged up on Monday even as Chinese memory-chip advances pressured sector stocks, with CEO Elon Musk weighing in on China’s manufacturing scale and calling SpaceX an “anomaly in the matrix.”
SPCX stock rose 0.5% on Monday, marking its second straight gain after ending the previous week 2.3% higher.
China’s New DRAM Plans Rattle Chipmakers
Micron fell 4% on Monday, while other memory and storage companies, including SK Hynix, Samsung, SanDisk, Seagate and Western Digital, also declined after Chinese chipmaker ChangXin Memory Technologies (CXMT) outlined plans for a new DDR5 server-memory product.
CXMT said it aims to launch a server memory module using a “4F square” DRAM design by the end of the year. The architecture aims to pack more memory cells into the same chip area as the 6F square design widely used today, potentially increasing density.
Musk Casts SpaceX As Outlier In China’s Scale Race
Musk contrasted China’s manufacturing scale on X with SpaceX’s launch lead. “When China figures out how to manufacture a product, their ability to scale is often greater than the rest of the world combined,” he said, citing lithium batteries and solar.
He said SpaceX is a “rare counter-example”: it puts an order of magnitude more mass into orbit than the rest of the world, although China now accounts for most non-SpaceX mass to orbit. “SpaceX is an anomaly in the matrix,” he added.
Musk then turned to memory chips, noting that RAM was a “low margin commodity” only about three years ago. He said LPDDR5 and LPDDR6 share a common standard that China “seems to be solving fast,” while newer high-bandwidth memory architectures, an SRAM layer beneath logic, 3D-stacked RAM above logic and the challenge of cooling the logic will be “harder to solve.”
Memory Constraints Weigh On SpaceX’s AI Push
Musk’s comments follow SpaceX’s August earnings call, when he said memory supply was struggling to keep pace with AI-driven demand. He said memory output was growing about 20% a year while demand was increasing 200% or more, a gap he said could push prices higher.
The supply issue matters to SpaceX’s expansion into AI computing, alongside its launch and Starlink businesses. Under a multi-year Google cloud-services agreement disclosed in June, Google is set to pay SpaceX $920 million a month from October 2026 through June 2029 for access to computing capacity, including about 110,000 Nvidia GPUs and related infrastructure with memory.
The company reported $15.8 billion in AI-related capital expenditures, within about $18.4 billion in total capital expenditures. Revenue reached $7.8 billion, while SpaceX recorded a $541 million net loss.
Musk is also pursuing a longer-term chip-supply strategy through Terafab, a Texas facility to make, package and test logic and memory chips. Intel joined the project in April, with its 14A manufacturing process expected to be used at the fab. In August, SpaceX and Tesla announced an initial $16.8 billion investment in the project. Musk also said recently that TSMC could potentially sublease part of the facility, while Tesla and SpaceX would retain ownership.
How Do Retail Traders Feel About SPCX?
On Stocktwits, retail sentiment for SPCX slipped to ‘bearish’ from ‘neutral’ levels a day ago amid a 197% jump in 24-hour message volumes.
One user said, “$SPCX Be all do all. With XAI Colossus to do the deep thinking and design, SpaceX may become uncatchable in many fields, not only space.”
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Another user questioned, “$SPCX the only thing green today. What you all dont believe in AI on the ground anymomre but you believe in AI in space?”
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SPCX stock has risen 2% year-to-date.
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