ChangXin Memory Technologies shares closed 7.8 percent lower on Monday, a decline that occurred despite the company forecasting a sharp swing to profitability for the first nine months of 2026. The market reaction highlights a divergence between the chipmaker's operational outlook and broader investor sentiment regarding the sector.
In a filing released Friday, CXMT projected that net profit attributable to shareholders would range from 131 billion yuan ($19.58 billion) to 132.5 billion yuan for the January-to-September period. This forecast represents a reversal from a net loss of 5.28 billion yuan recorded in the same period a year earlier. The company also expects revenue to reach between 265 billion yuan and 270 billion yuan, an increase of 232.9 billion yuan to 237.9 billion yuan compared to the prior year.
CXMT attributed this financial improvement to rapidly growing demand for AI computing power since the second half of 2025. According to the filing, this demand has boosted the global DRAM market, leading to supply shortages and significant price increases. The Chinese chipmaker has been gaining ground in the global memory chip market, challenging established players such as Samsung Electronics, SK Hynix, and Micron Technology.
Data from Counterpoint Research released last month indicates that CXMT accounted for 10 percent of global DRAM revenue in the third quarter of 2026, up from 5 percent a year earlier. However, chip stocks have faced pressure over the past week due to concerns about artificial intelligence financing. Some experts have also flagged a possible chip supply glut after a couple of years, a risk that may be influencing investor caution despite individual company forecasts.