CXMT, formerly ChangXin Memory Technologies, raised approximately $8.6 billion in its initial public offering (IPO), making it the largest mainland Chinese semiconductor offering on record. The shares soared by 466% on its Shanghai trading debut, closing at 49 yuan compared to the sale price of 8.66 yuan per share. This surge propelled CXMT's market capitalization to $487.73 billion, making it China's most valuable listed company, surpassing even the Industrial and Commercial Bank of China.
The company, founded in 2016 in Hefei, is one of the world's largest manufacturers of DRAM chips, critical components for AI servers, automobiles, and consumer electronics. CXMT expects its first-half revenue to increase more than sevenfold to a range of 110 billion yuan to 120 billion yuan, with a projected net profit of 66 billion yuan to 75 billion yuan, reversing a previous year's loss. This significant growth is attributed to the soaring demand for memory chips driven by the rapid rise of AI, contributing to a global memory chip shortage.
While the IPO offered an opportunity for Chinese investors to gain exposure to the memory supercycle, analysts expressed concerns about the stock's excessive first-day surge and potential speculation. The deal was initially priced at a steep discount compared to global peers, but the immediate rally has led to warnings of a potential bubble. Investor appetite for CXMT was also driven by its crucial role in China's AI initiatives, particularly in light of U.S. export controls on advanced chipmaking technology. In the first three months of 2026, CXMT accounted for approximately 9% of global DRAM shipments, with forecasts suggesting it could reach 11% by 2028.
