Bank of America initiates coverage on ChangXin Memory Technologies with buy rating

Bank of America Securities has initiated research coverage of ChangXin Memory Technologies (CXMT), assigning a 'buy' rating and a price target of 65 yuan. The report highlights the company's rapid expansion of production capacity as a primary driver for its valuation.

CXMT is currently recognized as China's largest DRAM manufacturer and the fourth-largest globally. Data suggests the company has reached a monthly wafer production capacity of approximately 300,000 units, accounting for roughly 15 percent of global supply.

The bank attributes its positive outlook to the company's strong positioning within China’s AI and data center markets. Analysts project that a significant portion of CXMT’s DRAM output will be absorbed by local OEMs and cloud operators, with forecasts suggesting a 9 percent increase in average selling prices for DRAM next year.