Shares of ChangXin Memory Technologies (CXMT) dropped over 6.5% on Monday, despite the company forecasting a significant turnaround to profitability for the first nine months of 2026. In a filing on Friday, CXMT projected net profit attributable to shareholders between 131 billion yuan ($19.58 billion) and 132.5 billion yuan for the January-to-September period, reversing a net loss of 5.28 billion yuan from the same period last year.
The company also expects revenue of around 265 billion yuan to 270 billion yuan, marking a substantial increase from the previous year. CXMT attributed this sharp improvement to the surging demand for AI computing power since the second half of 2025, which has driven up global DRAM market prices due to supply shortages.
CXMT has been making strides in the global memory chip market, now holding a 10% share of global DRAM revenue in the third quarter of 2026, up from 5% a year earlier. This growth positions CXMT as the fourth-largest supplier worldwide, challenging established players like Samsung Electronics, SK Hynix, and Micron Technology.
The company's increased production capacity at its Hefei and Beijing lines has contributed to its rising market share, along with advancements in research and development of advanced processes and high-bandwidth memory (HBM). Despite the positive outlook, investors appear cautious, leading to the recent drop in shares.