Memory Chipmaker CXMT Soars 466% On Debut—Becomes China’s Most Valuable Company
CXMT—whose memory chips have been sought by Apple—made a blockbuster trading debut on Monday and briefly became the most valuable publicly listed company in mainland China, mirroring surges in the stock price of other major memory chipmakers like Samsung, SK Hynix and Micron amid an AI-driven boom in demand.
Shares of CXMT soared 466% after its stock market debut on Monday, ending the day at RMB 49 ($7.24).
Earlier in the day, CXMT’s market cap briefly eclipsed internet giant Tencent and surged to $547 billion, making it the most valuable publicly listed Chinese company.
The Hong Kong-listed Tencent reclaimed the top spot at the end of the trading day, but CXMT remains the most valuable company listed in mainland China with a market cap just below $490 billion.
The chipmaker raised at least $8.5 billion from the sale of 6.7 billion shares as part of its initial public offering, making it China’s biggest market debut since the Agricultural Bank of China went public in 2010.
According to Bloomberg, the company’s IPO was 212 times oversubscribed—in contrast to SpaceX's record-breaking market debut last month, which was more than four times oversubscribed.
Despite its blockbuster debut, CXMT’s nearly $490 billion market cap is still significantly smaller than rivals SK Hynix’s $881 billion valuation and Micron’s $1 trillion valuation. Samsung Electronics, whose chipmaking division is the third of the big three memory chipmakers, has a market cap of $1.1 trillion. All three companies have seen their valuations soar amid an AI-driven surge in demand for high-speed memory chips. Earlier this month, SK Hynix raised $26.5 billion from its U.S. trading debut.
The AI-driven memory chip buying frenzy has significantly affected consumer electronics and forced the makers of smartphones, laptops, video game consoles, and other devices to raise prices. Last month, Apple announced an across-the-board increase in the prices of its Mac computers, iPads and other devices. Ahead of the price increase, Apple CEO Tim Cook was asked by the Wall Street Journal about the company potentially sourcing Chinese memory chips, and he said: “I think everything needs to be on the table…I think we should look at all supply.” CXMT is currently on a Pentagon blacklist for alleged ties to the Chinese military; however, the Financial Times reported last month that Apple has been lobbying the Trump administration for a waiver to buy its memory chips.