China's CXMT swings to nearly $20B profit as memory prices soar

From loss to record profit

Chinese memory chipmaker CXMT expects a net profit of 131 to 132.5 billion yuan (roughly $19.6-19.8 billion) for the January-September period. A year earlier, the company reported a 5.3 billion yuan loss over the same stretch.

Revenue surges too

CXMT's revenue rose to a range of 265-270 billion yuan. The company attributes the jump to a memory supply crunch driven by AI demand. The appetite of AI data centers for DRAM and NAND has pushed prices to historically high levels.

Buyback move

CXMT's chairman also proposed a share buyback of up to 2 billion yuan. The move is being read as a sign of confidence in the company's cash flow and market value.

Why it matters

The surge in memory prices affects not only manufacturers but also phone, laptop and server makers. CXMT's return to profit shows China is gaining weight in the global memory market.