China's CXMT shares fall nearly 8% as investors look past chipmaker's profit turnaround — SkimNews
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- CXMT closed 7.8% lower Monday despite forecasting net profit of 131–132.5 billion yuan ($19.58 billion) for January–September 2026, reversing a 5.28 billion yuan net loss a year earlier.
- CXMT projected revenue of 265–270 billion yuan for the same period, a year-over-year increase of 232.9–237.9 billion yuan.
- CXMT attributed the turnaround to rapidly growing AI computing power demand since the second half of 2025, which it said caused DRAM supply shortages and significant price increases.
- Counterpoint Research data shows CXMT captured 10% of global DRAM revenue in Q3 2026, up from 5% a year earlier, as the Chinese chipmaker challenges Samsung Electronics, SK Hynix, and Micron Technology.
- Chip stocks broadly have come under pressure over the past week on AI financing worries, with some experts flagging a possible chip supply glut after a couple of years of expansion.
Why it matters: Despite a sharp profit turnaround and doubling of global DRAM market share to 10%, CXMT's 7.8% stock drop signals investors are pricing AI financing risk and a possible supply glut over current earnings momentum. For Micron, SK Hynix, and Samsung, CXMT's rapid share gains intensify competitive pressure just as experts warn of oversupply.
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