ChangXin Memory Technologies (CXMT) saw its shares drop by 7.8% on Monday, October 19, 2026, despite forecasting a massive profit turnaround for the first nine months of the year, driven by surging AI computing demand. The Chinese chipmaker expects net profits of up to 132.5 billion yuan, reversing a significant loss, and has expanded its global DRAM market share to 10%. However, broader market concerns about AI financing and a potential chip supply glut have dampened investor sentiment across the sector.
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Shares of ChangXin Memory Technologies (CXMT) closed 7.8% lower on Monday, October 19, 2026, even after the Chinese memory chipmaker projected a significant swing to profitability for the first nine months of the year.
In a filing released Friday, CXMT announced an expected net profit attributable to shareholders of between 131 billion yuan ($19.58 billion) and 132.5 billion yuan for the January-to-September 2026 period. This marks a dramatic reversal from a net loss of 5.28 billion yuan reported a year earlier. The company also forecasted revenues ranging from 265 billion yuan to 270 billion yuan, representing a substantial increase of 232.9 billion yuan to 237.9 billion yuan compared to the same period in 2025.
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). (Photo by VCG/VCG via Getty Images)
Vcg | Visual China Group | Getty Images
CXMT attributed this sharp financial improvement to the burgeoning demand for artificial intelligence (AI) computing power, which has been rapidly accelerating since the latter half of 2025. This surge in demand has invigorated the global DRAM market, leading to supply shortages and notable price increases for memory chips.
Shares of CXMT on 19 Oct.
The Chinese chipmaker has been making significant strides in the global memory chip arena, increasingly challenging established industry leaders like Samsung Electronics, SK Hynix, and Micron Technology. According to Counterpoint Research data from last month, CXMT captured 10% of global DRAM revenue in the third quarter of 2026, a notable rise from 5% in the prior year.
However, despite these positive internal developments, chip stocks globally have faced pressure over the past week. Investor concerns regarding artificial intelligence financing and expert warnings about a potential chip supply glut after several years of growth are weighing on the sector.
