Chinese Chip Leader CXMT’s Sales Rise Sevenfold Yet Growth Slows CXMT Corp. posted a sevenfold surge in quarterly revenue, though the pace of acceleration slowed in a sign that an AI-fueled rally in Chinese memory chip prices may be losing steam. The company swung from a loss to a profit, after aggressive capacity expansion and growing its role as a global supplier of conventional memory or DRAM. By Bloomberg News CXMT Corp. The country’s biggest chipmaker reported revenue of 118.7 billion yuan ($17.8 billion) for the three months ended September.

That’s up 613% from a year ago but 19.3% from the June quarter, a more modest rise than the jump it managed in the second quarter from the first. Net income reached 54.4 billion yuan, largely flat with that of second quarter.

Investors are closely watching the up-and-comer’s progress as Beijing seeks to nurture its own memory champions to propel its competition with the US in AI, and reduce a reliance on global leaders from Samsung Electronics Co. Micron Technology Inc.

CXMT’s report — which follows eye-popping growth numbers from SK Hynix Inc. and Samsung this week — suggests it’s getting tougher to sustain the immense price increases that roiled the market this year. The company mainly sells conventional memory to consumer electronics and server firms, who’ve been severely squeezed by shortages because memory producers are prioritizing high-bandwidth memory used for AI.

That’s created a windfall for CXMT since late last year, helping expand the company’s global market share from just 4% a year ago to 10% by the end of the second quarter. But those steep price hike are also hurting demand from clients, forcing smartphone makers from Xiaomi Corp. to Oppo to reduce output in low-end devices. China’s Secretive New Chip Giant Is Built to Dodge US Curbs Consumer electronics customers are pushing back and curtailing CXMT’s pricing power, according to Jing Jie Yu, an analyst at Morningstar Conventional memory price growth should moderate in the second half of 2026, according to research firm TrendForce.

“Consumer electronics still make up roughly 30-40% of global memory demand, and we think this pushback will lead to earnings plateauing over the next few quarters.”

Yu said. In the longer-term, CXMT is trying to break into the business of supplying top-tier HBMs for AI accelerators, while researching techniques to advance in manufacture without access to US-sanctioned chipmaking equipment.

The company has been making incremental technology upgrades, with a so-called fifth-generation production platform to enhance its memory products’ cost effectiveness. This month, it disclosed a new memory cell architecture called 4F², underscoring how the Chinese firm is trying to close the technological gap The revelation help sparked a broader selloff of memory giants’ shares.

While CXMT’s progress may pose a threat to the incumbent memory leaders in the long run, “it is not yet at a stage to fundamentally shift the market’s competition dynamics,” said MS Hwang, an analyst at Counterpoint Research.