China Chipmaker CXMT Has Surged 466% in Market Debut

Shares of Chinese memory chipmaker Changxin Technology Group (CXMT) surged nearly 466% in their Shanghai stock market debut on Monday, valuing the company at about 3.3 trillion yuan ($460 billion) and making it China’s most valuable listed company.

The Hefei-based company raised 57.92 billion yuan ($8.6 billion) in its initial public offering after pricing shares at 8.66 yuan each, marking Asia’s largest IPO so far this year.

The stock closed at 49 yuan on Shanghai’s STAR Market, lifting its market capitalization above the 2.6 trillion yuan valuation of Industrial and Commercial Bank of China.

CXMT held a 7.67% share of the global dynamic random-access memory (DRAM) market in 2025 based on fourth-quarter sales, according to its IPO prospectus. DRAM chips are used in devices ranging from smartphones to servers.

The global DRAM market is dominated by Samsung Electronics, SK Hynix and Micron Technology.

“I have no doubt the company is going to grow to be a global leader. It’s maybe just a question of time that it can be not only a challenger, it can be a global champion in this particular sector,” Theodore Shou, chief executive of Yiyi Capital, said.

The listing follows reports earlier this month that Apple had begun testing CXMT’s DRAM chips for devices sold in China, boosting investor interest in the company.

CXMT posted an operating profit of 35.43 billion yuan in the first quarter, compared with an operating loss of 2.83 billion yuan a year earlier, helped by growing global demand for computing power and capacity allocation by major manufacturers.

“A 470% performance on day one isn’t that rare. What’s very prominent in this particular case is a company of this size performing so well,” Shou said, adding that a relatively limited free float and strong market sentiment had driven the stock’s surge.

Morningstar said in a note on Friday that China’s push for semiconductor self-sufficiency and the strategic importance of artificial intelligence would likely make CXMT a key beneficiary. While its technology still trails global rivals, demand from Chinese internet companies developing AI is expected to support adoption of its memory chips, the research firm said.

Founded in 2016 by Chairman Zhu Yiming, CXMT said it plans to use proceeds from the IPO mainly to expand memory wafer production and research and development.

Shou cautioned that profitability in the memory chip sector was unlikely to remain at current levels.

“I think we are nearing a short-term peak in terms of sentiment around the memory cycle,” he said. “These memory chip businesses are sustainable, but the great margins and net profitability we’re seeing today are not sustainable and have to normalize over a cycle.”

He added that while the stock price may not have peaked, the market appeared to be at the height of a supply-demand imbalance.

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