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China’s CXMT eyes $4.2 billion Shanghai listing to fund DRAM expansion

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China’s leading dynamic random access memory (DRAM) chipmaker ChangXin Memory Technologies (CXMT) said on Tuesday it plans to raise 29.5 billion yuan ($4.22 billion) through an initial public offering in Shanghai, as it seeks to expand production and narrow the gap with global rivals.

According to its prospectus, CXMT will issue 10.6 billion shares, with proceeds earmarked primarily for upgrading production lines, improving manufacturing technologies and boosting research and development of advanced DRAM products. The listing follows the company’s unveiling last month of its latest DDR5 DRAM chips, directly challenging established competitors in South Korea and the United States.

Founded in 2016 with strong state backing, CXMT has become a cornerstone of China’s ambition to build a domestic memory chip industry. The global DRAM market is currently dominated by Samsung Electronics, SK Hynix and Micron Technology, which together control more than 90% of the market. CXMT held around a 4% global market share in the second quarter, according to data from Omdia cited in the prospectus.

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The company operates three 12-inch DRAM fabrication plants in Beijing and at its headquarters in Hefei, Anhui province. After nine funding rounds, CXMT counts major Chinese investors such as Alibaba and Xiaomi, and has developed four generations of DRAM technology.

CXMT is also investing heavily in high-bandwidth memory (HBM), a specialised form of DRAM essential for advanced processors such as Nvidia’s graphics processing units used in generative AI. The company plans to begin HBM production by the end of 2026 at a back-end packaging facility under construction in Shanghai.

Financially, CXMT expects strong growth. It projects revenue could rise by as much as 140% year-on-year in 2025, driven by higher memory prices and increased sales volumes since July. While the company has posted heavy losses in recent years, it said it could turn profitable as early as 2026, depending on wafer shipments and average selling prices. CXMT reported losses of 8.32 billion yuan in 2022, 16.3 billion yuan in 2023 and 7.1 billion yuan in 2024, and recorded a 2.3-billion-yuan loss in the first half of this year.

Samsung forecasts best profit in three years amid AI-driven chip boom

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Samsung Electronics said it expects its largest quarterly profit since 2022, as a global surge in demand for AI and memory chips pushes prices higher and tightens supply. The South Korean tech giant estimated an operating profit of 12.1 trillion won ($8.5 billion) for the July–September quarter, up 32% year-on-year and well above the 10.1 trillion won expected by analysts. This marks Samsung’s best performance in 13 quarters.

Analysts said the surprise earnings were powered by strong demand for commodity memory chips, used in data centre servers, which offset slower-than-expected progress in the company’s high bandwidth memory (HBM) chip sales to Nvidia. Despite slipping 0.5% in morning trade after an early rally, Samsung’s stock has risen around 75% this year, reflecting investor confidence in its chip rebound.

Experts noted that reduced inventories and stronger DRAM and NAND prices have given Samsung an edge. “Samsung is a big beneficiary of growing demand for commodity chips,” said Sohn In-joon from Heungkuk Securities. Meanwhile, narrower losses at its foundry unit helped ease cost pressures.

The company also expects revenue to hit a record 86 trillion won, up 8.7% year-on-year, aided by a weaker won. However, analysts warned that trade tensions between the U.S. and China, potential U.S. tariffs, and China’s export controls on rare earth materials could cloud future performance.

Samsung plans to release full quarterly results on October 30 and has reportedly introduced a stock-based incentive plan for all South Korean employees to align performance with company growth.

Micron Forecasts Strong Revenue Growth Driven by High AI Memory Chip Demand

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Micron Technology (MU.O) has forecasted a robust third-quarter revenue, exceeding Wall Street estimates, driven by growing demand for its high-bandwidth memory (HBM) chips crucial to artificial intelligence (AI) models. This surge in AI-related demand sent Micron’s shares up by 2% in after-hours trading.

The company highlighted that AI demand is significantly boosting the need for HBM chips, a specialized form of dynamic random access memory (DRAM) vital for advanced AI systems, particularly those powered by Nvidia’s (NVDA.O) processors—one of the major beneficiaries of the AI boom.

Micron’s Chief Business Officer, Sumit Sadana, told Reuters that the company expects continued sequential growth through 2025, driven by increased capacity and market share in HBM production. Notably, Micron’s HBM chips for 2025 are already sold out, reflecting strong demand.

In addition to HBM chips, Micron also provides flash memory NAND chips, with demand expected to rise across both data center and consumer markets. The company forecasts significant profitability improvements for fiscal 2025, which ends in August.

Michael Ashley Schulman, Chief Investment Officer at Running Point Capital, emphasized Micron’s key role in supplying essential memory components for AI infrastructure, noting that the company’s positive outlook underscores its importance in the rapidly expanding AI sector.

Micron’s forecast includes anticipated revenue of $8.80 billion, with a margin of plus or minus $200 million for the third quarter. This exceeds the consensus estimate of $8.5 billion. For the second quarter ending February 27, Micron posted revenue of $8.05 billion, surpassing the $7.89 billion estimate, with earnings per share of $1.56, well above the $1.42 forecast.

However, Micron also acknowledged the uncertainty surrounding potential new tariffs imposed by the Trump administration, stating that it has not factored the potential impact into its forecasts but plans to pass any costs on to customers.