Changxin Memory Technologies, or CXMT, has climbed to a market capitalization of $524 billion, topping Tencent’s $510 billion and becoming the most valuable Chinese company, according to the report. During Thursday trading, the two companies’ market value lines crossed, with the newly listed memory-chip maker moving ahead of the internet giant.
In renminbi terms, CXMT was valued at about RMB 3.58 trillion, while Tencent stood at roughly RMB 3.44 trillion. That put a chip stock listed less than a month ago ahead of a company that has operated for more than two decades.
Shares rose more than 500% after the July 27 debut
CXMT formally listed on the Shanghai Stock Exchange’s STAR Market on July 27 under stock code 688825. On its first trading day, the stock jumped 467%, surpassing Industrial and Commercial Bank of China and taking the top spot in A-share market capitalization. Since the listing, the cumulative gain at one point moved past 500%.
Last month, MSCI said it would add CXMT to the MSCI China All Shares Index, effective Aug. 10.
Positioned as the world’s No. 4 DRAM maker
The company is headquartered in Hefei, Anhui. The report described CXMT as the world’s fourth-largest DRAM producer, behind Samsung, SK Hynix and Micron. DRAM is a core component used to temporarily store computing data in smartphones, computers and AI servers.
According to the company’s prospectus, CXMT’s global DRAM market share reached 7.67% in 2025.
Tencent faces investor questions over AI spending
Tencent’s position has moved in the opposite direction. Bloomberg reported that market concern over the company’s continued increase in AI investment has been growing. In June, Tencent doubled the scale of its AI spending while also dealing with intensifying competition, the report said.
HBM remains a gap for CXMT
The company’s story still carries clear risks. For AI servers, high-bandwidth memory, or HBM, is a critical part because it sharply increases data transfer speed between chips and memory. The report said CXMT has not yet started mass production of HBM, and its technology level is estimated to be about two generations behind Samsung, SK Hynix and Micron.
CXMT’s planned back-end HBM packaging plant in Shanghai is targeting the start of production by the end of 2026. After the stock’s cumulative gain pushed beyond 500%, whether the valuation has already priced in future growth remains a central market question.
“Chips are replacing clicks as the new traffic”
Gary Tan, a portfolio manager at Allspring Global Investments, told Bloomberg that CXMT’s move past Tencent “is a message from the market — chips are replacing clicks as the new traffic.” He also said he expects the valuation gap between chipmakers and internet platforms could widen further.
Semiconductor self-sufficiency remains central to the story
The report framed CXMT’s rise as more than a single stock move. It also reflects China’s push for semiconductor self-sufficiency. After U.S. export controls disrupted external supply, the ability to produce memory chips domestically at a level closer to international peers directly affects whether the AI supply chain can operate in a closed loop inside the country.
Tencent’s decline, by contrast, does not necessarily point to a specific operational mistake. The report said that as AI investment shifts from an optional boost to a required commitment, the market is applying a stricter standard to the return on each round of spending rather than relying mainly on user scale and advertising revenue to support valuations.