Memory manufacturer CXMT has bypassed internet giant Tencent to become the most valuable company in China. Just 1 month after listing on the Shanghai Stock Exchange, the chipmaker saw its market value climb to 524 billion dollars. But the company still faces the challenge of breaking the global dominance of its larger rivals.
The rapid rise of CXMT is fueled by a massive surge in demand for artificial intelligence hardware. Investors are pouring funds into the company because AI infrastructure requires vast amounts of memory to function. This enthusiasm pushed the stock value up by 467% recently.
Currently, CXMT holds the 4th position among global DRAM manufacturers. Despite this achievement, 3 massive corporations control the vast majority of the market. Samsung, SK hynix, and Micron collectively own more than 90% of global supply. CXMT currently holds a market share of just 9%.
While the chipmaker surges, Tencent is experiencing a different trajectory. Stock values for the internet giant fell by more than 26% since the start of the year, dropping its total market value to 510 billion dollars. CXMT intends to capitalize on this shift by expanding production and aims to enter the top 3 global DRAM suppliers soon.
