CXMT Overtakes Tencent as China's Most Valuable Company After IPO Surge

Published Aug 13, 01:27 PM UTC

ChangXin Memory Technologies (CXMT) became China's most valuable company with a $524 billion market cap, surpassing Tencent's $511 billion, just 17 days after its Shanghai IPO. The crossover occurred as Tencent's shares fell 5.34% after reporting a 176% surge in AI infrastructure capital spending, which drove free cash flow negative. CXMT, a DRAM manufacturer, has secured major server DRAM deals with Tencent ($3 billion) and ByteDance ($7 billion). The company holds 7.67% of the global DRAM market and aims for 30% by 2030, though it lacks EUV lithography tools. CXMT swung to a $5.2 billion operating profit in Q1 2025 from a loss a year earlier. Analysts are divided on valuation, with Nomura seeing upside and Morningstar estimating the stock is overvalued.