Micron Technology's stock fell 3.2% on Monday after reports that Samsung plans to begin mass production of next-generation HBM4 chips earlier than expected. The South Korean tech giant intends to start large-scale production as early as this month for use in Nvidia's artificial intelligence processors, according to South Korea's Yonhap news agency.

Samsung has reportedly passed Nvidia's quality certification process and secured purchase orders, with production timing aligned to Nvidia's launch plans for its next-generation AI accelerator, known as Vera Rubin. This development puts pressure on Micron, which competes with Samsung and SK Hynix in manufacturing high-bandwidth memory chips crucial for advanced AI processors. HBM chips carry higher margins than typical memory components and have been a significant factor in Micron's stock performance, which has more than quadrupled over the past 12 months.

During Micron's most recent earnings call, CEO Sanjay Mehrotra indicated the company was set to ramp up its own HBM4 production in the second quarter of 2026. Samsung's accelerated timeline could potentially give the Korean manufacturer a competitive edge in supplying chips to Nvidia and other AI chip makers. The company's HBM4 chips reportedly feature data processing speeds of up to 11.7 Gbps, exceeding industry standards and offering 22% higher performance than previous generation HBM3E chips.