ChangXin Memory Technologies (CXMT) shares dropped 7.8% on Monday, despite the Chinese chipmaker forecasting a massive profit turnaround for the first nine months of 2026, with anticipated net profits between 131 billion and 132.5 billion yuan. This sharp reversal from a 5.28 billion yuan loss is attributed to surging AI computing demand boosting the global DRAM market. 
However, investors appeared to look past these gains, reflecting broader market concerns about AI financing and potential oversupply in the chip sector, even as CXMT’s global DRAM market share expanded to 10%.
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Shares of ChangXin Memory Technologies (CXMT), a prominent Chinese memory chipmaker, experienced a significant decline on Monday, closing 7.8% lower. This downturn occurred despite the company's forecast of a remarkable surge to profitability for the first nine months of 2026, reversing a substantial loss from the previous year.
According to a filing released Friday, CXMT anticipates a net profit attributable to shareholders ranging between 131 billion yuan ($19.58 billion) and 132.5 billion yuan for the period spanning January to September. This stands in stark contrast to a net loss of 5.28 billion yuan reported in the same period a year earlier. Furthermore, the company projects revenues to reach approximately 265 billion to 270 billion yuan, marking an impressive increase of 232.9 billion to 237.9 billion yuan year-over-year.
QINGDAO, CHINA - SEPTEMBER 04: A general view shows facilities related to Changxin Memory Technologies on September 4, 2026 in Qingdao, Shandong Province of China. The company's global DRAM market share has exceeded 10 percent following increased production capacity at its Hefei and Beijing lines, positioning it as the fourth-largest supplier worldwide while advancing research and development in advanced processes and high-bandwidth memory (HBM).
Vcg | Visual China Group | Getty Images
CXMT largely credits this dramatic financial improvement to the burgeoning demand for AI computing power, a trend that has accelerated since the latter half of 2025. This demand has invigorated the global DRAM market, leading to notable supply shortages and subsequent price hikes. The Chinese chipmaker has been steadily expanding its footprint in the global memory chip sector, intensifying competition with established industry giants like Samsung Electronics, SK Hynix, and Micron Technology.
Data from Counterpoint Research last month indicated CXMT's share of global DRAM revenue reached 10% in the third quarter of 2026, a significant jump from 5% in the prior year. Despite these individual company gains, the broader chip industry has faced headwinds recently. Chip stocks have experienced pressure over the past week amidst concerns regarding artificial intelligence financing and some expert predictions of a potential chip supply glut following several years of high demand.
Shares of CXMT on 19 Oct.
