China's CXMT shares fall nearly 8% as investors look past chipmaker's profit turnaround

Shares of ChangXin Memory Technologies , or CXMT, closed 7.8% lower Monday, even as the company forecast a sharp swing to profitability for the first nine months of 2026.

CXMT said in a filing Friday that it expects net profit attributable to shareholders of 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 a year earlier, according to 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.

The company attributed the sharp 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.

CXMT has been gaining ground in the global memory chip market, challenging established players including Samsung Electronics, SK Hynix and Micron Technology.

The Chinese chipmaker accounted for 10% of global DRAM revenue in the third quarter of 2026, up from 5% a year earlier, according to Counterpoint Research's data last month.

Chip stocks, however, have come under pressure over the past week due to worries about artificial intelligence financing, with some experts also flagging a possible chip supply glut after a couple of years.