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CXMT becomes China's most valuable company at $524B, passing Tencent 17 days after IPO
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Memory maker CXMT's market cap reached $524 billion, overtaking Tencent's $511 billion less than three weeks after its Shanghai listing, as Tencent's stock dropped on surging AI capital expenditure.
The valuation crossover illustrates a broader shift where investors reward DRAM suppliers over AI hardware buyers, even when the buyer's spending directly fuels the supplier's revenue. CXMT's rapid ascent and massive server DRAM contracts with Tencent and ByteDance signal growing demand for domestic Chinese memory, though analyst disagreement on fair value is extreme.
Written by elseif from the cluster below · every claim links back to a sourceThe three things worth knowing
CXMT's $524B market cap surpassed Tencent's $511B just 17 days after a 466% first-day IPO surge that raised $8.6B.
Tencent's valuation fell after it reported a 176% jump in AI infrastructure spending to RMB 52.8B and negative free cash flow of RMB 13.8B.
CXMT signed a $3B server DRAM deal with Tencent in June and a five-year $7B+ deal with ByteDance in July, pushing server products from 8.4% to 26.5% of revenue.
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