Shenzhen Longsys Electronics expects a profit of $1.36 to $1.62 billion for 1H26, a dramatic rise from $2.2 million last year. This surge is attributed to heightened demand for memory chips due to global AI infrastructure expansion and limited wafer capacity.
Shenzhen Longsys Electronics forecasts a net profit between $1.36 billion and $1.62 billion for the first half of 2026. This represents a staggering increase from the $2.2 million profit reported in the same period last year, translating to a growth rate close to 73,636%.
The company's revenue forecast for the first half of 2026 is between $3.24 billion and $3.68 billion, substantially higher than the previous year's $1.5 billion. This increase is largely attributed to the ongoing demand for memory and storage chips fueled by the global shift towards artificial intelligence.
Longsys has secured long-term agreements with global memory wafer suppliers to ensure stable supply amidst increasing demand. The exact suppliers were not disclosed, but Longsys is shifting away from conventional suppliers like Micron and Samsung towards newer players like CXMT and YMTC.
The anticipated growth has led to a 12.5% increase in Longsys stock over the weekend, with prices doubling from their lowest points in recent months. The company also received regulatory approval to raise $544 million through a private share placement, aimed at enhancing its R&D capabilities.
As the demand for memory chips escalates, established manufacturers face pressure from emerging players in China. The global memory chip shortage has affected PC manufacturers significantly, leading to a projected 14% decline in the PC market this year. Companies like Longsys are positioning themselves as crucial alternatives to traditional suppliers.
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Shenzhen Longsys Electronics expects a profit of $1.36 to $1.62 billion for 1H26, a dramatic rise from $2.2 million last year. This surge is attributed to heightened demand for memory chips due to global AI infrastructure expansion and limited wafer capacity.