Memory-Chip Maker CXMT Overtakes Tencent As China’s Most Valuable Company

Chinese memory-chip manufacturer CXMT has surpassed Tencent Holdings in market value, reflecting growing investor enthusiasm for semiconductor companies benefiting from the artificial intelligence boom.

CXMT, which listed in Shanghai last month, saw its market capitalisation reach around $524 billion despite its shares falling 1.2% on Thursday. Tencent’s valuation, meanwhile, declined to approximately $510 billion after its Hong Kong-listed shares came under pressure.

The shift marks a broader preference among investors for AI-related hardware companies over established internet businesses.

CXMT has increasingly become a proxy for China’s ambitions to expand its semiconductor capabilities and reduce reliance on overseas chip technology. Its shares have gained 8% since listing, following a dramatic 467% surge on debut.

AI demand boosts investor appeal

Based in Hefei, Anhui, CXMT is the world’s fourth-largest producer of dynamic random-access memory (DRAM), a key component used in smartphones and advanced AI servers.

The company received an additional boost after MSCI announced that it would add CXMT to the MSCI China All Shares Index, with the inclusion taking effect on August 10.

Tencent, whose businesses include WeChat and Riot Games, has faced a tougher year, with its shares down more than 26%. The company has significantly increased its AI spending as it seeks to compete with rivals in the rapidly developing technology sector. Its shares fell another 4.5% on Thursday.

The contrasting performances underline how investor sentiment is increasingly favouring companies positioned to benefit directly from AI infrastructure and semiconductor demand. CXMT’s rise also highlights the growing importance of memory chips as AI applications expand globally.