China’s ChangXin Memory Technologies (CXMT) reported a more than sevenfold increase in third-quarter revenue on Friday, benefiting from a never-ending demand for memory chips used in artificial intelligence infrastructure amid a squeeze in global supplies.
The results underline the Chinese chipmaker’s growing position in the global memory industry, where established players such as Samsung Electronics, SK Hynix and Micron are facing a more competitive landscape.
The earnings announcement came as US memory and storage stocks also faced pressure ahead of the opening bell.
CXMT revenue jumps 613%
CXMT reported net profit attributable to shareholders of 54.4 billion yuan ($8.17 billion) for the three months ended September 30, reversing a loss in the same period last year.
Revenue climbed 613.2% year over year to 118.71 billion yuan ($16.7 billion), representing a 19.3% increase from the previous quarter.
However, the sequential increase in attributable profit was much more modest, at around 3%.
For the first nine months of 2026, revenue reached 269.02 billion yuan, while net profit attributable to shareholders stood at 132.04 billion yuan.
The company had recorded a loss of about 5.3 billion yuan in the corresponding period last year.
CXMT attributed the improvement to higher memory-chip prices amid tight supply, alongside capacity expansion and a shift towards a more favourable product mix.
As major rivals increasingly prioritise higher-value products such as high-bandwidth memory (HBM), CXMT has benefited from demand for conventional DRAM products.
CXMT shares retreat after blockbuster debut
CXMT made its Shanghai stock market debut in July, with shares surging 466% on their first trading day and briefly making it China’s most valuable listed company.
Its 58-billion-yuan offering was Asia’s largest IPO this year.
However, the stock has since lost ground, closing 2.5% lower on Friday. It has fallen approximately 32% from its August peak as investors reassess valuations and the sustainability of the AI investment boom.
US memory stocks also came under pressure in premarket trading, with Micron dropping over 6% and SanDisk down close to 9.5%. In South Korea, Samsung fell 3% while SK Hynix tumbled to close 7% lower.
Investors are weighing the durability of elevated memory margins against the possibility of additional competition and the overall sustainability of the AI trade.
New technology adds to competitive concerns
CXMT had also reported progress on a new DRAM cell architecture known as 4F², designed to fit more memory cells onto a chip and potentially increase storage density.
The company plans to introduce a server-memory product using the technology by the end of 2026.
Samsung and SK Hynix are pursuing similar approaches, making the technology an important area of competition among memory manufacturers.
Earlier reports of CXMT’s progress triggered a selloff across global chip stocks as investors assessed the potential impact on established suppliers.
The technology has yet to demonstrate large-scale commercial production, but CXMT’s rapid financial growth and manufacturing expansion are already adding to pressure on established memory-chip makers.
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