Chinese Memory Maker Longsys Forecasts 60,000% Profit Surge Amid AI Demand

Shenzhen Longsys Electronics, owner of the Lexar brand, has forecasted a net profit of $1.36–1.62 billion for the first half of 2026, a staggering increase compared to last year's $2.2 million. This surge is attributed to the surging demand for memory chips and storage components for AI infrastructure. The company's revenue is also expected to double, reaching $3.24–3.68 billion.

The primary driver of this growth is the global race for AI components, which has intensified competition for limited production capacities. Longsys has secured long-term supply agreements with chip manufacturers, though it has not disclosed partner names. Experts suggest these are likely Chinese producers CXMT and YMTC, which are increasingly replacing traditional suppliers like Micron, Samsung, and SK hynix.

The memory chip shortage is already impacting the PC market, with analysts projecting a 14% decline in sales this year. In response to the scarcity, Western companies, including Corsair, Dell, and HP, are considering Chinese memory chips despite geopolitical risks. Even Apple, which previously held significant influence over suppliers, is lobbying for access to CXMT's products in the U.S.

Longsys's record financial projections led to a 12.5% surge in its shares on the Shenzhen Stock Exchange over the weekend. Additionally, Chinese regulators have approved the company's plan to raise up to $544 million through private share placements, with funds earmarked for high-tech product development, including AI storage solutions and memory controllers.