CXMT Overtakes Tencent as China's Most Valuable Company

ChangXin Memory Technologies, a Chinese memory chipmaker, has surpassed Tencent to become the most valuable publicly traded company in China, marking a significant shift in investor focus toward artificial intelligence hardware. The milestone was reached on Thursday, August 13, when CXMT's market capitalization stood at approximately $524 billion, compared to Tencent's valuation of about $510 billion.

The crossover occurred even as CXMT's shares slipped 1.2% on the day. Tencent's stock fell further, declining 4.5% after the company disclosed a 176% surge in AI-related capital spending for the June quarter, which pushed its free cash flow into negative territory. The event underscores a growing preference among investors for companies supplying the hardware that powers AI, rather than the traditional internet platforms that consume it.

CXMT's rise has been rapid. The company, based in Hefei, Anhui province, priced its initial public offering in Shanghai on July 27, raising $8.6 billion. Its shares surged 466% on the first day of trading. The company is the world's fourth-largest producer of dynamic random-access memory, or DRAM, which is essential for everything from smartphones...