CXMT Jumps 466%, Becomes China’s Most Valuable Listed Company as US Memory Stocks Lose Billions

• CXMT surged 466% in its Shanghai debut, lifting its market value to roughly $487 billion and making it China’s most valuable listed company
• The blockbuster debut coincided with a sharp decline in US memory stocks, including Micron and other semiconductor companies, as investors weighed China’s expanding chip ambitions
• Despite the rally, Samsung, SK Hynix and Micron continue to account for roughly 90% of global DRAM production, leaving CXMT with a lot of room to grow

Chinese memory chipmaker CXMT has jumped into the global spotlight after a notable stock market debut that sent its valuation close to half a trillion dollars. The rally comes at a time when demand for AI infrastructure is changing the semiconductor industry, but it also rattled investors outside China. As memory stocks across the US and Asia retreated, markets were left guessing whether CXMT’s rise marks a turning point in the global DRAM business.

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CXMT’s Record Debut Puts China’s Memory Industry in Focus

Shares of CXMT surged as much as 466% during their first day of trading on Shanghai’s STAR Market. This lifted the company’s market capitalization to roughly 3.3 trillion yuan ($487 billion). The gain made it the most valuable listed company in mainland China. It managed to overtake the Industrial and Commercial Bank of China.

Founded in 2016 and headquartered in Hefei, China, the company produces DRAM chips used in AI servers, smartphones, PCs and other consumer electronics. CXMT said proceeds from its IPO will mostly fund memory chip production expansion and research and development. This further boosts Beijing’s push for greater semiconductor self-sufficiency.

The debut also highlighted investor enthusiasm for domestic chipmakers. According to Hargreaves Lansdown, only about 7% of CXMT’s shares were available for trading, tightening supply and boosting buying pressure during the opening session.

It should be noted that CXMT shares were down about 2.7% in Tuesday afternoon trading after Monday’s blockbuster debut. But the stock remained far above its IPO price of 8.66 yuan.

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Memory Stocks Endure a Setback as Competition Concerns Rise

While CXMT IPO headlines dominated in China, memory stocks in the US moved lower. Micron, Nvidia, Western Digital and other semiconductor stocks declined. This is mostly because investors assessed whether China’s growing semiconductor industry could eventually change global memory supply.

Despite this, the competitive landscape seems to be still in the hands of established players. According to TrendForce, Samsung Electronics, SK Hynix, and Micron account for roughly 90% of global DRAM production. Meanwhile, persistent supply shortages are expected to continue through at least 2027.

TrendForce analyst Ellie Wong said customers are increasingly looking to diversify their memory suppliers, a trend that could create additional opportunities for CXMT as it expands production. That growth, however, will likely take time before it materially alters the balance of the global DRAM market.

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