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Howard Liu

Chinese chipmaker ChangXin Memory Technologies (CXMT) reported a sharp surge in first-half revenue on Friday, as the firm released its first financial results since becoming China’s most valuable publicly traded company in a blockbuster Shanghai listing last month.
The Hefei-based firm – China’s leading maker of dynamic random-access memory (DRAM) products – posted revenue of 150.31 billion yuan (US$22.4 billion) for the six months to June, up 873.64 per cent year on year, according to a filing with the Shanghai Stock Exchange.
Net profit attributable to shareholders reached 77.61 billion yuan, reversing a loss of 2.33 billion yuan in the same period last year.
The results were well above CXMT’s pre-initial public offering guidance, which forecast first-half revenue of 110 billion to 120 billion yuan and net profit of 50 billion to 57 billion yuan. Revenue exceeded the top end of that range by about 25 per cent, while attributable profit was about 36 per cent higher.
The earnings boom has been fuelled by skyrocketing demand for memory products from the artificial intelligence industry. CXMT said global DRAM supplies remained tight and prices continued to rise in the first half, a supply shortage that it expected to persist in the coming months.
The company has also benefited from expanding production and an improving product mix as it ramps up output of newer products including DDR5, which is increasingly used in personal computers, workstations and servers. DDR-series revenue reached 69.47 billion yuan in the first half, accounting for 46.3 per cent of CXMT’s main business revenue, up from 31.9 per cent in 2025.
CXMT said its latest LPDDR6 chip – capable of speeds of up to 12,800Mbps – had been sent to key customers for validation as the company accelerates preparations for mass production. It marks the first time a Chinese DRAM maker has entered the commercialisation race for a new LPDDR generation at roughly the same time as global industry leaders.

China’s domestic DRAM producers are gaining global market share as they expand capacity faster than overseas rivals. UBS estimates Chinese suppliers’ share of global DRAM shipments will rise from about 7 per cent in 2025 to 8.4 per cent this year and 9.4 per cent in 2027.
“We don’t think the impact of more aggressive expansion by Chinese suppliers will be as severe as some investors fear,” said Jimmy Yu, head of China technology research at UBS Securities, on Thursday. “We still expect the DRAM upcycle to last until the second quarter of 2028.”
Morgan Stanley, which initiated coverage of CXMT with an overweight rating this week, estimates the company will reach monthly production capacity of 300,000 wafers this year, equivalent to about 13 per cent of global DRAM wafer capacity and 11 per cent of global bit shipments. It expects capacity to rise to 500,000 wafers per month by 2028.
The bank forecasts CXMT’s full-year revenue to reach 388.9 billion yuan in 2026, suggesting a significant further acceleration in the second half if that estimate is met. Morgan Stanley expects the company’s earnings growth to be supported by rising output, strong memory pricing and greater exposure to higher-value products including DDR5, server DRAM and high-bandwidth memory.
The rapid expansion comes despite a persistent technology gap with overseas rivals. UBS estimates Chinese DRAM manufacturers remain around two to three technology generations behind leading global suppliers, while larger die sizes leave domestic producers with a cost disadvantage.
The bank nevertheless expects capacity additions by Chinese firms to be absorbed by rising demand over the next two years rather than cause a global supply glut.
CXMT’s shares fell 0.88 per cent on Friday to 58.6 yuan, giving the company a market capitalisation of about 3.98 trillion yuan. The stock has risen more than 576 per cent from its IPO price of 8.66 yuan.
Morgan Stanley this week set an 88 yuan price target for CXMT, implying 18.5 times estimated 2027 earnings, compared with 4.4 times for global memory peers. The bank said the premium reflected CXMT’s faster growth, capacity expansion, China’s memory localisation drive and exposure to rising demand from the country’s AI infrastructure sector.


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China’s leading DRAM chipmaker outperforms its own forecasts in its first financial results since a blockbuster Shanghai listing


China’s leading DRAM chipmaker outperforms its own forecasts in its first financial results since a blockbuster Shanghai listing.


China’s CXMT posts massive 870% revenue surge as ‘aggressive expansion’ pays off

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China’s leading DRAM chipmaker outperforms its own forecasts in its first financial results since a blockbuster Shanghai listing

China’s leading DRAM chipmaker outperforms its own forecasts in its first financial results since a blockbuster Shanghai listing