Chinese memory-chip maker CXMT guided for a more than eightfold jump in nine-month revenue as it continued to cash in on the AI-fueled memory crunch.
CXMT expects revenue of between 265 billion yuan and 270 billion yuan, equivalent to $39.61 billion to $40.36 billion, for the first nine months of 2026, up from 32.08 billion yuan a year earlier, according to a late Friday filing.
That likely led to net profit of between 131 billion yuan and 132.5 billion yuan for the period, compared with net loss of 5.3 billion yuan in the year-ago period.
CXMT said rapidly growing demand for artificial-intelligence computing power has boosted the dynamic random-access memory, or DRAM, industry. "Products are in short supply, and prices have risen significantly," it said.
The latest estimate is evidence of how quickly the global memory shortage has turned into a windfall for chip makers as AI companies rush to secure high-bandwidth memory chips for data centers, causing a severe squeeze on DRAM supply and driving up their prices.
In a separate filing, Chairman Zhu Yiming proposed a 1 billion yuan to 2 billion yuan buyback over 12 months to fund employee incentive plans or reduce the company's registered capital. The share repurchase plan is pending board approval and will be funded by the company's own capital.
CXMT's Shanghai-listed shares tumbled on Monday despite the robust guidance and buyback plan, falling as much as 8.9% amid a broader tech selloff.
Data-center provider CoreWeave's share and bond selloff brought credit risks into focus, hammering stocks across the AI supply chain. Memory companies, which traded near peak valuations recently, have been one of the biggest victims.
CXMT, once China's most valuable listed company, overtaking Tencent, has lost more than 10% of its market value since its trading debut in July.
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