CXMT Shares Drop Nearly 8% Despite Profit Turnaround
ChangXin Memory Technologies (CXMT) shares fell nearly 8% on Monday despite forecasting a significant profit turnaround for the first nine months of 2026. The company expects net profits between 131 billion yuan and 132.5 billion yuan, reversing from a loss of 5.28 billion yuan in the same period last year. CXMT attributed its improved performance to rising demand for AI computing power since mid-2025, which has driven up global DRAM prices due to supply shortages. The company's market share now exceeds 10%, positioning it as a top-four supplier globally and challenging major players like Samsung Electronics (SSNLF), SK Hynix (SKHXF), and Micron Technology (MU). Despite the strong earnings forecast, chip stocks have faced pressure due to concerns over AI financing and potential oversupply in the market after years of expansion.
Topics: AI computing demand ChangXin Memory Technologies DRAM market stock price movement