CXMT overtakes Tencent as China's most valuable company with $524B market cap

Published Aug 13, 01:27 PM UTC

ChangXin Memory Technologies (CXMT) has surpassed Tencent to become the world's most valuable Chinese company, with a market capitalization of $524 billion versus Tencent's $511 billion. This milestone occurred less than three weeks after CXMT's 466% first-day surge on the Shanghai stock exchange. The crossover was driven by a 5.34% drop in Tencent's U.S.-listed shares after it reported a 176% surge in AI infrastructure capital expenditure, which pushed 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. Analysts are sharply divided on valuation, with Nomura seeing upside and Morningstar estimating the stock is over three times its fair value.