Chinese memory manufacturer Changxin Storage has turned out to be one of the main beneficiaries of the AI boom: revenue in the first half of the year increased nearly tenfold, and last year’s losses were replaced by huge profits. Exchanges have reacted accordingly – Changxin Memory shares soared 570% following its recent IPO, making the memory maker China’s largest listed company by market capitalization.
Image source: cxmt.com
In the first half of 2026, Changxin Storage achieved revenue of 150.3 billion yuan ($22.4 billion), more than double its full-year sales in 2025; profits reached 77.6 billion yuan ($11.55 billion) – the company suffered a loss in the same period last year. A month ago, Changxin Storage held its second-largest rights issue on the Shanghai Stock Exchange, raising 66.6 billion yuan ($9.91 billion), including an over-allotment option. The company has become the world’s fourth-largest DRAM maker; demand and prices for its products have soared as artificial intelligence booms and the data centers needed to run it proliferate.
Changxin Memory attributed its huge growth to the global shortage of DRAM chips and said this trend will continue in the second half of the year. The new generation LPDDR6 memory chip has been sent to customers for samples and has now entered mass production. The manufacturer’s market value surpassed Tencent and became China’s most valuable company. The stock price soared 570%, but Goldman Sachs believes that estimate is too low – ten times higher than Changxin Storage’s expected profits in 2027. The multiple is based on forecasts for net profit to more than double to 361 billion yuan ($53.72 billion) – which will be about 161 billion yuan ($23.96 billion) this year.
Changxin Storage has become a symbol of Beijing’s efforts to reduce China’s reliance on foreign technology; the company is also developing HBM memory for artificial intelligence accelerators. She plans to use the funds gained from entering the stock exchange to expand production capacity to catch up with larger competitors. Changxin Storage has already increased expenses in the first half of the year. Research expenses increased by 87% to 6.86 billion yuan (US$1.02 billion); R&D personnel increased by 61% from the same period last year to 7,500. Changxin Memory has been blacklisted by the U.S. Department of Defense, but Apple is in talks to buy its memory chips as well as NAND chips produced by another Chinese company, Changjiang Memory. Apple’s move alarmed Washington – and the company was asked to abandon the measure.
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