Shares of ChangXin Memory Technologies, known as CXMT, fell 7.8% on Monday despite the company projecting a sharp return to profitability for the first nine months of 2026.

In a filing Friday, CXMT said it expects net profit attributable to shareholders to reach between 131 billion yuan ($19.58 billion) and 132.5 billion yuan from January through September. That would mark a reversal from the 5.28 billion yuan net loss reported for the same period a year earlier, according to a Google translation of the filing.

The company forecasts revenue of approximately 265 billion yuan to 270 billion yuan, representing an increase of 232.9 billion yuan to 237.9 billion yuan compared with the year-earlier period.

Shares of CXMT on 19 Oct.

CXMT attributed the dramatic improvement to accelerating demand for AI computing power since the second half of 2025. The surge has lifted the global DRAM market, triggering supply shortages and substantial price increases, the company said in its filing.

The Chinese memory-chip maker has steadily expanded its position in the global market, putting it in competition with established suppliers such as Samsung Electronics, SK Hynix and Micron Technology.

Counterpoint Research data published last month showed that CXMT generated 10% of global DRAM revenue in the third quarter of 2026, double its 5% share a year earlier.

Chip stocks have nevertheless faced pressure over the past week amid concerns about artificial intelligence financing. Some experts have also warned that the industry could face a potential supply glut after several years of rising demand.