Longsys posts 61,800% profit jump as AI memory demand crushes DRAM/NAND supply

Shenzhen Longsys Electronics, the Chinese parent of Lexar, forecasted a net profit of $1.36–$1.62 billion (9.2–11 billion yuan) for H1 2026, a staggering 61,818% to 73,636% increase from $2.2 million in H1 2025. Revenue is expected to exceed $3.24–$3.68 billion (22–25 billion yuan), more than double the $1.5 billion achieved in 2025. The surge is driven entirely by the global AI infrastructure buildout competing for limited memory and storage chip wafer capacity, with Samsung and SK Hynix signaling shortages could persist into 2027 or beyond.

Chinese memory suppliers CXMT and YMTC are capturing share as Western corporates (Corsair, Dell, HP) and even Apple—which historically had leverage with mainstream suppliers—begin sourcing from Chinese fabs. Longsys stock jumped 12.5% on the announcement and has more than doubled in three months. Chinese regulators also approved a $544 million (3.7 billion yuan) private share placement to fund R&D into AI-focused storage solutions and high-end memory controllers. The company has secured long-term supply agreements with global wafer suppliers to ensure stability.

For infrastructure architects: this underscores the DRAM/NAND constraint as the actual capacity bottleneck (beyond GPU). Chinese suppliers gaining legitimacy in the supply chain—particularly for AI—signals a supply-chain diversification that may reshape tier-1 OEM dependencies. Memory pricing remains a material opex variable; monitor quarterly supply updates from Samsung, SK Hynix, and Micron to gauge when shortages ease.