Chinese memory-chip maker CXMT Q3 revenue jumps 613%, Micron and SanDisk shares tumble on competition fears
Chinese DRAM maker CXMT reports strong Q3 results, confirming AI-driven capacity expansion and triggering sell-offs among global memory giants.
Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT) reported its third-quarter financial results on October 30. The company saw its revenue surge by 613.2% year-over-year to 118.71 billion yuan ($16.7 billion), with net profit attributable to shareholders reaching 54.4 billion yuan ($8.17 billion), marking a significant turnaround from losses in the same period last year. These figures confirm earlier market expectations that demand for AI infrastructure has driven a sharp rise in memory chip prices.
CXMT attributed the improvement to higher memory-chip prices amid tight supply, alongside capacity expansion and a shift towards a more favourable product mix. As major rivals such as Samsung Electronics, SK Hynix, and Micron increasingly prioritize higher-value products like high-bandwidth memory (HBM), CXMT has benefited significantly from demand for conventional DRAM products.
The earnings announcement had an immediate impact on the global memory chip market. In premarket trading in the US, Micron Technology dropped over 6% and SanDisk fell nearly 9.5%. In South Korea, Samsung Electronics declined 3% while SK Hynix tumbled to close 7% lower. Investors are reassessing the durability of elevated memory margins against the backdrop of intensifying competition from China and potential oversupply risks.
Additionally, CXMT disclosed progress on a new DRAM cell architecture known as 4F², designed to increase storage density, with plans to introduce a server-memory product using this technology by the end of 2026. Although large-scale commercial production has not yet been demonstrated, CXMT's rapid financial growth and manufacturing expansion have heightened concerns about the changing competitive landscape in conventional DRAM.