CXMT Corp. has overtaken Hong Kong-listed Tencent Holdings Ltd. as the world's most valuable Chinese company, underscoring the AI‑driven frenzy fueling demand for memory‑chip stocks.
CXMT, which debuted in Shanghai last month and quickly became China's largest onshore-listed company, fell 1.2% Thursday, leaving its market capitalization at $524 billion. Even so, it became more valuable than Tencent, whose valuation slid to $510 billion amid mounting concerns over its growing artificial intelligence investments.
The crossover reflects investors' continued preference for AI-linked hardware over traditional internet champions. CXMT has become a proxy trade for the country's AI ambitions and semiconductor self-sufficiency push, with shares up 8% following its initial 467% debut surge.
Photo Credit: Bloomberg
“CXMT exceeding Tencent is a message from the market — chips are the new clicks,” said Gary Tan, a portfolio manager at Allspring Global Investments. “Our sense is the gap between the two will widen as agentic AI take increasing share of internet flows.”
The Hefei, Anhui-based company is also the world's fourth biggest producer of dynamic random-access memory, which is essential in everything from smartphones to advance AI servers.
ALSO READ: Tencent Q2 Breakdown: Gaming Rebounds, But AI Spending Weighs On Profit — Key Takeaways
Adding to momentum to CXMT's stock, MSCI announced last month that it has begun to include the firm in the MSCI China All Shares Index, with the changes taking place August 10.
Meanwhile, Tencent, whose assets include messaging app WeChat and game developer Riot Games, has lost ground, with shares down more than 26% this year. The tech giant more than doubled its AI spending in the June quarter as it faces pressure to catch up to rivals, which led to a 4.5% decline in its Hong Kong-listed stock on Thursday.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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