Normal view of CXMT workplace buildings is seen in Shanghai, China, on July 15, 2026, as CXMT raises billions for AI expertise (Photograph by Ying Tang/NurPhoto through Getty Pictures)
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Shares of chipmaker Changxin Know-how Group rose greater than 500% Monday as they debuted on Shanghai’s tech-heavy STAR Market, making CXMT probably the most worthwhile China-listed firm.
The Hefei-based firm raised 57.92 billion yuan ($8.6 billion) after pricing its IPO at 8.66 yuan per share, making it Asia’s greatest to date this yr.
CXMT shares have been final buying and selling at 52 yuan, giving the corporate a market cap of about 3.5 trillion yuan.
Primarily based on gross sales figures for the fourth quarter of 2025, CXMT held a 7.67% share of the worldwide DRAM market in 2025, based on its IPO prospectus. DRAM chips are utilized in digital gadgets starting from smartphones to servers.
The worldwide DRAM market is dominated by Samsung Electronics, SK Hynix, and Micron Know-how.
“I’ve little question the corporate goes to develop to be a worldwide chief. It is possibly only a query of time that it may be not solely a challenger, it may be a worldwide champion on this explicit sector,” mentioned Theodore Shou, CEO at Yiyi Capital on CNBC’s “Squawk Field Asia.”
The itemizing comes at a time when CXMT has seen elevated consideration, following experiences earlier this month that Apple has begun testing the Chinese language chipmaker’s DRAM for gadgets bought in China.
CXMT swung to an working revenue of 35.43 billion yuan within the first quarter from a lack of 2.83 billion yuan a yr earlier, because it noticed continued development in international computing energy demand and capability allocation by main producers.
“A 470% efficiency on day one is not that uncommon. What’s very distinguished on this explicit case is an organization of this measurement performing so nicely,” Shou mentioned. Prior to now, such efficiency was primarily pushed by smaller-cap corporations, he mentioned, including that for CXMT, the comparatively restricted free float on day one, mixed with the built-up market sentiment, have been key elements driving the surge.
Morningstar mentioned in a be aware Friday that as AI is more and more changing into a difficulty of nationwide safety for China, CXMT will possible be a key beneficiary. The analysis agency added that whereas CXMT’s expertise nonetheless lags international reminiscence leaders, home web giants spearheading AI improvement will possible drive strong adoption of its chips as Beijing pushes for semiconductor self-sufficiency.
CXMT, based in 2016 by Chairman Zhu Yiming, plans to spice up its technological capabilities and core competitiveness, primarily reminiscence wafer mass manufacturing and R&D tasks, by using the IPO proceeds, based on a Google translation of the knowledge within the prospectus.
“I believe we’re nearing a short-term peak when it comes to sentiment across the reminiscence cycle,” Shou warned, including that buyers have already been promoting into the IPO, notably in China. “These reminiscence chip companies are sustainable, however the nice margins and web profitability we’re seeing as we speak usually are not sustainable and should normalize over a cycle,” he mentioned.
He additionally added that whereas this will not be the height for share costs, the market is correct on the peak of a requirement and provide imbalance.
