Shares of Chinese memory chipmaker CXMT jumped 8.95% on Friday to close at 57.60 yuan ($8.51), extending a rally that has lasted five trading days. The surge briefly pushed the company's market capitalization to about 3.54 trillion yuan ($523 billion), making it the most valuable listed company on mainland China's stock exchanges.
A Dramatic Debut and Continued Rally
CXMT listed on Shanghai's STAR Market on July 27, and its shares soared as much as 466% on opening day. The IPO raised 57.92 billion yuan ($8.6 billion), which the company plans to use to expand production and close the technology gap with foreign rivals. The stock's continued climb reflects investor enthusiasm for China's push to build a homegrown semiconductor supply chain.
The Global DRAM Landscape
CXMT holds about 7.7% of the global DRAM market, making it the fourth-largest producer behind Samsung Electronics, SK Hynix, and Micron Technology, which together control roughly 90% of the market. The company mainly builds mainstream memory chips for phones, laptops, and servers. It trails its rivals in High Bandwidth Memory (HBM), a critical component for AI data centers.
The Pentagon's Watchlist
The U.S. Department of Defense has added CXMT to a list of firms it says are linked to the Chinese military. CXMT denies the designation. The listing doesn't impose immediate sanctions but can complicate business with American companies. Apple, Dell, and HP have reportedly started testing CXMT's chips as they look to diversify away from Korean and American suppliers. Apple is separately lobbying Washington for clearance to use Chinese-made memory.
Production and Pricing Realities
A global DRAM shortage — sometimes called 'RAMageddon' — has boosted Apple's smartphone pricing power and affected chip stocks. Analysts are divided on how much relief CXMT can deliver. Some note that pricing benefits for everyday devices are unlikely in the near term, as the company focuses on mainstream chips rather than the high-end HBM that commands premium prices.
CXMT aims to start supplying HBM within China by 2027, according to a director at Counterpoint Research. For now, the global chip shortage continues to give Apple and other device makers pricing leverage, and the question of whether CXMT can break the dominance of the top three DRAM producers remains open.
