Blockbuster earnings from CXMT, one of China's biggest memory chip-makers, provides the latest evidence of how semiconductor companies are cashing in on the global memory shortage caused by the artificial-intelligence boom.
ChangXin Memory Technologies' results--the first since its Shanghai listing last month--showed a swing to profit for the first half of the year, and a nearly tenfold rise in revenue.
That underscores the rapid rise of the Hefei-based company, which is at the forefront of China's push for self-sufficiency in the chips that power AI.
CXMT said Friday that revenue soared to 150.31 billion yuan, equivalent to $22.36 billion, in the six months ended June. That beat the company's 110 billion yuan-120 billion yuan estimate. Net profit reached 77.61 billion yuan, also topping guidance.
The strong results are an example of just how quickly the global memory shortage has turned into a windfall for chip makers.
Artificial-intelligence companies have been aggressively securing memory chips for data centers, tightening global supply and pushing prices higher.
Research firm TrendForce estimates that contract prices for server dynamic random access memory rose 64% in the second half of 2025, and sees scope for a further 270% climb this year.
Investor enthusiasm for semiconductor stocks has been equally buoyant. Shares of CXMT more than quintupled in their July trading debut, and the company has overtaken Tencent to become China's most valuable listed company, with a market capitalization now nearing $600 billion.
Founded in 2016 with state backing, CXMT has become a cornerstone of China's semiconductor ambitions, and is now the world's fourth-largest manufacturer of DRAM memory.
As Beijing's rivalry with the U.S. intensifies, investors are betting that Chinese customers will increasingly replace foreign memory chips with domestic alternatives.
Morgan Stanley expects that CXMT's share of global DRAM bit shipments will rise to 15% by 2030 from 11% this year, driven by strong demand from China's AI infrastructure buildout and capacity expansion.
Supply constraints may also draw overseas clients toward CXMT, even with uncertainty over U.S. export restrictions. Asked recently about easing restrictions to tap Chinese memory chip makers, Apple Chief Executive Tim Cook told the Wall Street Journal that all options need to be on the table.
CXMT is pushing to accelerate mass production of its next-generation low-power memory chips--the kind typically designed for premium smartphones and other AI-enabled devices--as it races to narrow the gap with larger rivals.
Despite its meteoric rise, CXMT has a long way to go if it wants to crack the top three: Samsung Electronics, SK Hynix and Micron control more than 90% of the global DRAM market, and CXMT lags behind in advanced AI memory products.
Analysts' estimates have the Chinese company trailing the industry leaders by two or three generations. CXMT's long-term success will depend on how quickly it can narrow the technology gap while expanding capacity to meet growing AI demand, they said.
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