CXMT recoups $5B decade-long loss in single quarter as AI boom drives 700% revenue surge

Published Jul 31, 09:30 AM UTC

ChangXin Memory Technologies (CXMT), a Chinese DRAM chip maker based in Hefei, burned through approximately $5 billion over a decade but recouped that entire amount in a single quarter as AI-driven demand for memory chips surged. Between 2025 and 2026, CXMT's revenues exploded 700%, reaching $7.5 billion in Q1 2026 alone. The company listed on the Shanghai Stock Exchange on July 27, 2026, at 8.66 yuan per share, closing its first day at 49 yuan — a 466% surge that gave it a price-to-earnings ratio over 1,600. Nomura set a price target of 116 yuan, implying 135% upside. CXMT's global DRAM market share rose from 3% to 8%, challenging incumbents SK Hynix, Samsung, and Micron, whose stocks declined on the news. However, US export controls limit CXMT's access to equipment for high-bandwidth memory (HBM) chips. Counterpoint Research suggested this constraint could spur innovation, potentially allowing CXMT to leapfrog competitors.