Chinese Memory Maker CXMT Surpasses Tencent* in Market Cap

Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT) has become the country's most valuable publicly traded company, surpassing Tencent* in market capitalization. At market close, CXMT's valuation reached $524 billion, while Tencent* was valued at $511 billion. This milestone was achieved just 17 days after CXMT's IPO on the Shanghai Stock Exchange, where its shares surged 466% on the first trading day.

CXMT's valuation surge came amid a decline in Tencent*'s stock, triggered by its Q2 financial results. The company reported a 176% year-over-year increase in capital expenditures—reaching 52.8 billion yuan ($7.3 billion)—to fund AI infrastructure development and computing power acquisitions. This led to a 5.34% single-day stock drop for Tencent* and a 26% decline since early 2026.

CXMT is rapidly expanding its presence in the server memory market, a critical component for AI infrastructure. In June, the company signed a $3 billion DRAM supply agreement with Tencent*, followed by a five-year contract worth over $7 billion with ByteDance in July. Server product revenue at CXMT grew from 8.4% in 2024 to 26.5% in 2025.

Despite its success, analysts remain divided on CXMT's long-term sustainability. While Nomura predicts further stock growth, Morningstar estimates its fair value at one-third of its current market price. CXMT plans to increase its global DRAM market share to 30% by 2030 by constructing a new mega-factory and narrowing the gap with industry leaders like Micron and SK hynix.