DRAM Giant Cxmt Corporation Overtakes Tencent as Highest-Valued Company in China's A-Share and Hong Kong Markets

China's memory chip leader, Cxmt Corporation, has surpassed internet giant Tencent to become the most valuable company across China's A-share and Hong Kong markets, achieving this milestone in its closing market capitalization just over two weeks after its debut on the STAR Market. Amid the AI boom, market capital is rapidly shifting from internet platforms to hardware assets like semiconductors, signaling a fundamental change in the valuation logic for tech stocks.

On Thursday, shares of Cxmt Corporation briefly surged over 4% during the session before paring gains, closing down 1.2% with a total market capitalization of approximately 3.54 trillion yuan. In contrast, Tencent's stock dropped 4.5% after reporting its second-quarter results, reducing its market value to around 3.44 trillion yuan.

The primary pressure on Tencent's stock stems from market concerns over its surging AI investments. As capital expenditure expands significantly, investors are reassessing the impact of these AI investments on profit margins and cash flow. In comparison, Cxmt Corporation's shares have surged over 500% since its listing, making it a key target for funds betting on China's AI supply chain and semiconductor self-sufficiency.

Immediate Surge Post-Listing

Headquartered in Hefei, Anhui province, Cxmt Corporation is the world's fourth-largest DRAM producer, with products covering smartphones, high-performance computing, and AI servers. The company's stock price rallied sharply after its STAR Market listing, jumping about 467% on its first day and continuing to climb. Meanwhile, MSCI announced last month that it would include Cxmt Corporation in its MSCI China All Shares Index, with the adjustment taking effect on August 10, further driving passive fund allocation demand.

The fact that Cxmt Corporation's market value has overtaken Tencent is also seen by the market as a sign that the AI rally is spreading from software to hardware. Gary Tan, a portfolio manager at Allspring Global Investments, commented that Cxmt Corporation's market cap surpassing Tencent sends a signal: chips are becoming the new "clicks." As the share of AI agents in internet traffic grows, the market cap gap between chips and internet platforms may widen further.