Micron Technology's stock plunged 5.22% during intraday trading on Monday, marking a significant downturn for the memory chipmaker.

The sharp decline follows reports that Micron has been shut out of Nvidia's supply plan for next-generation high-bandwidth memory (HBM4) chips, which are crucial components for artificial intelligence processors. According to industry reports, Nvidia cut Micron's projected HBM4 share for its upcoming Vera Rubin AI accelerators to zero due to difficulties meeting stricter technical requirements, with SK Hynix and Samsung expected to supply approximately 70% and 30% respectively.

Compounding the competitive pressure, Samsung Electronics is reportedly preparing to begin mass production of HBM4 chips as early as this month, further challenging Micron's position in the lucrative AI memory market. The loss of a key position in Nvidia's supply chain represents a significant setback for Micron, whose stock performance has been heavily driven by surging demand for HBM chips in AI applications.