China’s CXMT shares slide despite ninefold revenue growth forecast

China's ChangXin Memory Technologies (CXMT) has forecasted a nearly ninefold increase in revenue for the first nine months of 2026, driven by surging demand for memory chips related to artificial intelligence. The company expects revenue of 265 billion yuan to 270 billion yuan for the period, compared to 32.08 billion yuan a year earlier.

Despite this strong outlook, CXMT shares fell by 7.6% to 41.58 yuan by 04:55 GMT, hitting their lowest since their debut on July 27. Investors remain cautious, keeping elevated expectations from AI-related firms. The company attributes the revenue growth to strong demand for computing power for AI applications, tighter global DRAM supply, and substantial price increases since the second half of 2025.

Higher capacity utilisation, improved manufacturing yields, and continued investment in research and development also supported earnings. The final financial figures will be disclosed in the company's third-quarter report.

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