This Chinese memory chip maker has global potential and is poised to outperform
The stakes are rising for China's memory chip maker CXMT ahead of its earnings release, expected Oct. 31.
TL;DR
- CXMT has potential for overseas expansion due to rising global memory prices and supply constraints.
- CLSA analysts initiated coverage with an outperform rating, projecting CXMT's global market share by bit shipment to reach 14% next year.
- Bernstein analysts also initiated coverage with an outperform rating, noting progress despite U.S. restrictions and expecting foreign companies to use CXMT chips in products sold outside the U.S.
- Foreign PC, smartphone, and consumer OEMs generally accept the use of Chinese memory in globally sold products, with exceptions in the U.S. and sensitive segments.
- CXMT is expected to release earnings on October 31, with BNP Paribas forecasting a 22% increase in September quarter revenue from the prior quarter.