CXMT, China’s leading memory chip maker, updates its IPO prospectus with a forecast of first-half revenue of 110 billion to 120 billion yuan (about $17.6 billion), driven by rising global DRAM prices amid AI demand and broader computing needs.

The company’s IPO is viewed as a barometer for China’s progress in DRAM technology in the AI era, underscoring the strategic role of memory chips in speeding data transmission between processors and memory.

For 2026, CXMT expects first-half revenue of 110 billion to 120 billion yuan as memory chip prices surge amid a wider AI-related chip boom.

In Q1, CXMT’s revenue rose over 700% year over year to 50.8 billion yuan, with net profit of 25 billion yuan, reversing a 1.6 billion yuan net loss from the prior year.

The company reported Q1 revenue of 50.8 billion yuan, up more than sevenfold year over year, and a net profit of 25 billion yuan, turning from a loss a year earlier.

FX reference included: $1 equals 6.8092 yuan.

CXMT attributes rapid revenue growth to expanded output, stronger sales, and an improved product mix, against a backdrop of DRAM demand outpacing supply.

The rise in revenue is driven by output expansion, better product mix, and stronger sales momentum amid a supply-demand imbalance in DRAM.

Net profit attributable to shareholders is expected to reach up to 57 billion yuan in the first half, signaling strong profitability ahead of the IPO.

Global DRAM demand is outpacing supply as AI-driven computing grows, pushing DRAM prices higher since the second half of 2025.