CXMT shares fell by 6.5% despite profit forecast of 131 billion yuan

Shares of China's largest memory manufacturer, ChangXin Memory Technologies (CXMT), fell by as much as 6.5% on Monday as the chip sell-off in the US on Friday extended to Asia. This occurred despite the forecast of a turnaround to profit for the first nine months of 2026.

On Friday, CXMT reported that it expects a net profit of at least 131 billion yuan – about $19.6 billion – compared to a loss of 5.28 billion yuan a year earlier. Investors were still selling.

The Nasdaq Composite lost more than 2% on Friday, and the S&P 500 fell 1.1%, ending the worst week since June amid a sell-off led by chipmakers. Concerns over debt-financed AI spending and expectations of accelerated rate hikes spread weakness to Asia: the KOSPI in Seoul fell by as much as 3.2%, Samsung Electronics and SK Hynix lost more than 4%, and Tokyo's Nikkei 225 declined by about 2%. Pressure was intensified by a new model from Chinese AI startup DeepSeek, which cast doubt on the demand for memory chips – a market in which CXMT operates.

In a statement, CXMT attributed growth to AI construction: dynamic memory (DRAM) has become scarce, and prices have been rising since the second half of 2025. The company expects revenue for the nine months to be in the range of 265–270 billion yuan.

According to Counterpoint Research, in the second quarter, CXMT captured 10% of global DRAM revenue – more than double from a year earlier. In comparison, SK Hynix's share for the same period fell from 39% to 25%.