ChangXin Memory Technologies, a Chinese memory chipmaker, saw its shares close 7.8% lower on October 19 despite forecasting a return to profit for January to September 2026.

In an October 16 filing, CXMT said net profit attributable to shareholders would be 131 billion yuan (US$19.6 billion) to 132.5 billion yuan (US$19.8 billion), from a 5.3 billion yuan (US$790 million) loss a year earlier.

CXMT said the turnaround was driven by AI-related shortages and higher prices for dynamic random-access memory, or DRAM.

JP Morgan also said AI demand was tightening supply for high-performance server DRAM.

Counterpoint Research data showed CXMT accounted for 10% of global DRAM revenue in the third quarter of 2026, up from 5% a year earlier.

Chip stocks have come under pressure over concerns about AI financing and the risk of a future supply glut.

Industry commentary warned prices could swing sharply as production capacity expands.

Separate industry commentary said US export controls had limited impact on CXMT and argued the company adapted by relying more on domestic and non-US equipment suppliers.

🔗 Source: CNBC

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