CXMT’s valuation crossed US$524 billion after a sharp post-listing rally, making the memory-chip maker more valuable than China’s internet giant Tencent.
Chinese memory-chip maker ChangXin Memory Technologies (CXMT) has overtaken Tencent Holdings in market capitalisation, reflecting growing investor enthusiasm for semiconductor companies benefiting from the artificial intelligence (AI) boom.
CXMT, which listed in Shanghai in July, saw its shares decline 1.2 per cent on August 13. Despite the fall, the company’s market value reached around US$524 billion, compared with Tencent’s US$510 billion.
The shift highlights changing investor preferences in China, where AI-related hardware companies are gaining attention over established internet businesses. CXMT has become a major market proxy for China’s push to strengthen its domestic semiconductor industry and reduce dependence on overseas suppliers.
CXMT’s shares surged nearly 467 per cent during their Shanghai debut and have gained another 8 per cent since then, reflecting strong investor demand for memory-chip stocks amid rising AI infrastructure spending.
Gary Tan, portfolio manager at Allspring Global Investments, said the market’s preference for CXMT over Tencent signals a broader shift towards semiconductor companies as AI becomes increasingly important to the technology industry.
Based in Hefei, Anhui, CXMT is the world’s fourth-largest DRAM producer. Dynamic random-access memory is widely used in smartphones, computers and servers, including systems supporting advanced AI workloads.
The company received another boost after MSCI announced in July that CXMT would be added to the MSCI China All Shares Index, with the inclusion taking effect on August 10.
Tencent, meanwhile, has faced pressure from investors over its increasing AI expenditure. The company, which owns businesses including WeChat and Riot Games, has seen its shares fall more than 26 per cent in 2026.
Tencent more than doubled its AI spending during the June quarter as it works to keep pace with rivals. Its Hong Kong-listed shares fell another 4.5 per cent on August 13.
The contrasting fortunes of CXMT and Tencent underline the growing importance of semiconductors in China’s technology strategy, as investors increasingly look to companies positioned to benefit from the expansion of AI infrastructure and domestic chip production.
