CXMT reports 873.6% first-half revenue surge

By the Editorial Team · Saturday, August 29, 2026

ChangXin Memory Technologies (CXMT) reported first-half revenue of 150.31 billion yuan, an 874% increase year-on-year, and net profit of 77.61 billion yuan, significantly exceeding its pre-IPO forecasts. The surge is driven by strong AI-related memory demand and constrained global DRAM supply, positioning CXMT for continued market share growth amid expanding production capacity and favorable industry trends.

ChangXin Memory Technologies (CXMT), China’s leading producer of dynamic random-access memory (DRAM), reported a substantial increase in first-half revenue, marking its first financial disclosure since listing on the Shanghai Stock Exchange last month. The Hefei-based company recorded revenue of 150.31 billion yuan (approximately HK$175.3 billion) for the six months ending in June, representing an 873.6% increase compared to the same period last year.

Net profit attributed to shareholders reached 77.61 billion yuan, reversing a loss of 2.33 billion yuan reported in the first half of 2025. These results significantly surpassed CXMT’s pre-IPO guidance, which had forecasted revenue between 110 billion and 120 billion yuan and net profit ranging from 50 billion to 57 billion yuan. Actual revenue exceeded the high end of the forecast by 25%, while profits came in 36% above expectations.

The company attributed the surge to strong demand for memory products driven by the growth of the artificial intelligence (AI) sector. CXMT noted that global DRAM supplies remained constrained in the first half of the year, leading to continued price increases, a trend it anticipates will persist in the near term.

Production expansion and a shift toward newer products also contributed to the company’s growth. Revenue from DDR-series chips, including the advanced DDR5 type commonly used in personal computers, workstations, and servers, totaled 69.47 billion yuan, accounting for 46.3% of CXMT’s main business revenue, up from 31.9% in 2025.

Chinese memory manufacturers like CXMT are steadily increasing their global market share by accelerating capacity expansion faster than foreign competitors. Industry analysts estimate that Chinese DRAM producers’ share of global shipments will grow from roughly 7% in 2025 to 8.4% in 2026 and 9.4% by 2027. Jimmy Yu, head of China technology research at UBS Securities, downplayed concerns about intensified competition, stating that the ongoing DRAM market upcycle is expected to continue until at least the second quarter of 2028.

Morgan Stanley, which recently initiated coverage of CXMT with an overweight rating, projects that the company will achieve a monthly production capacity of 300,000 wafers this year, accounting for about 13% of worldwide capacity. The firm anticipates this will increase to 500,000 wafers per month by 2028.

Despite strong financials, CXMT shares declined slightly by 0.88% to 58.60 yuan following the release, valuing the company at approximately 3.98 trillion yuan. Since its offering price of 8.66 yuan, the stock has surged over 576%. Morgan Stanley set an 88 yuan price target for CXMT’s stock, reflecting a valuation of 18.5 times projected 2027 earnings, compared with a global peer average of 4.4 times. The firm cited CXMT’s rapid growth, ongoing capacity expansion, the Chinese government’s push for domestic memory production, and the increasing demand stemming from China’s AI infrastructure development as key drivers behind this premium.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.