Shares of ChangXin Memory Technologies (CXMT) dropped by 6.5% on Monday, following a broader selloff in the US chip sector that impacted Asian markets. The decline occurred despite the company projecting a significant financial turnaround for the first nine months of 2026.
CXMT forecasts a net profit of at least ¥131 billion, equivalent to approximately $19.6 billion, compared to a loss of ¥5.28 billion in the previous year. The company expects revenue for the nine-month period to reach between ¥265 billion and ¥270 billion.
Market pressure was further exacerbated by concerns regarding debt-funded AI spending and the potential for interest-rate hikes. Additionally, doubts surrounding memory chip demand, linked to the latest model from Chinese AI startup DeepSeek, contributed to the negative sentiment.
Data from Counterpoint Research indicates that CXMT captured 10% of global DRAM revenue in the second quarter, more than doubling its market share from the previous year. During the same period, the market share of SK Hynix declined from 39% to 25%.
The broader regional downturn saw the KOSPI index in Seoul fall by 3.2%, with Samsung Electronics and SK Hynix shares each dropping by over 4%. Tokyo’s Nikkei 225 index also experienced a decline of approximately 2% during the trading session.
