China's CXMT Projects Significant Profit Boost from AI Demand

Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT) expects third-quarter revenue between 114.7 billion and 119.7 billion yuan (approximately $17.1-$17.9 billion). The company projects a net profit ranging from 53.4 billion to 54.9 billion yuan ($7.9-$8.2 billion), marking a significant turnaround from the previous year's losses.

The company attributes its projected growth to increased demand for AI-driven DRAM chip shortages and higher pricing. Expanded production capacity and improved manufacturing processes have also contributed to the positive outlook.

CXMT held a 10% share of the global DRAM revenue in the second quarter, up from 4% a year prior, according to industry research. This positions the company as the fourth-largest DRAM supplier globally, behind Samsung Electronics, SK Hynix, and Micron.

In addition to its strong performance, CXMT's chairman has proposed a share buyback plan valued between 1 billion and 2 billion yuan (approximately $299 million), pending board approval. The company has also previously been reported to be considering an initial public offering.