CXMT shares fall 6.5% despite forecast profit turnaround
CXMT shares fell 6.5% despite a forecast swing to profit for the first nine months of 2026.
In a filing on Friday, CXMT said it expects net profit attributable to shareholders of between 131 billion yuan and 132.5 billion yuan, or about $19.58 billion, reversing a net loss of 5.28 billion yuan a year earlier, according to CNBC, citing a Google translation of the filing.
The company expects revenue of around 265 billion yuan to 270 billion yuan, an increase of 232.9 billion yuan to 237.9 billion yuan from the same period a year earlier.
CXMT attributed the improvement to rapidly growing demand for AI computing power since the second half of 2025, which has boosted the global DRAM market, leading to supply shortages and significant price increases, according to the filing.
The company has been gaining ground in the global memory chip market, challenging established players including Samsung Electronics, SK Hynix and Micron Technology. CXMT accounted for 10% of global DRAM revenue in the third quarter of 2026, up from 5% a year earlier, according to Counterpoint Research data cited by CNBC from last month.
Editor's Summary CXMT forecast a swing to profit for the first nine months of 2026, with expected net profit of 131 billion to 132.5 billion yuan and revenue of 265 billion to 270 billion yuan. Its shares still fell 6.5% on Monday as investors looked past the turnaround. The company attributed the improvement to AI-driven DRAM demand and is gaining share in a market dominated by Samsung, SK Hynix and Micron.