CXMT's Nine-Month Sales Jump Eightfold on Memory Shortage

what happened

China's memory chipmaker CXMT, formally ChangXin Memory Technologies, grew its revenue more than eightfold in the first nine months of the year, to 269.02 billion yuan from 32.08 billion yuan a year earlier, according to Dow Jones Newswires. Net profit came in at 132.04 billion yuan, against a loss of 5.3 billion yuan in the same period last year. The revenue figure matched the company's own guidance of 265 billion to 270 billion yuan.

The company credited stronger DRAM prices, driven by a shortage of supply, along with added production capacity and a richer product mix. Its board also approved a proposal from the chairman to buy back shares worth between 1 billion and 2 billion yuan using the company's own funds.

why it matters

CXMT's shares have nearly quintupled since their July debut, but they have slipped in recent weeks as investors grow wary of AI spending and the cyclical swings of the memory market. Morgan Stanley analysts say constrained supply is supporting prices and profitability across the sector. Goldman Sachs expects CXMT to cover only part of China's DRAM and HBM needs by 2028, leaving room for other suppliers.

market impact

Memory chips: tight supply keeps DRAM prices and producer profits supported

• ▲DRAM prices pressure up — tight supply keeps memory pricing elevated

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