China's CXMT Sees Shares Drop Over 6% as Investors Look Past Chipmaker's Profit Turnaround
CXMT shares fell over 6% on Monday after the company released its earnings forecast for the first nine months of 2026.
TL;DR
- CXMT shares dropped 6.5% on Monday.
- The company forecasts a net profit of 131-132.5 billion yuan for the first nine months of 2026, reversing a prior year loss.
- Expected revenue is around 265-270 billion yuan.
- The profit improvement is linked to rising AI computing power demand, which has driven up global DRAM prices and caused shortages.
- CXMT's share of global DRAM revenue grew to 10% in Q3 2026 from 5% a year earlier.
- CXMT is challenging established memory chip manufacturers like Samsung, SK Hynix, and Micron.