CXMT that works with Apple makes a strong stock market debut; it was briefly China’s most valuable company

CXMT—whose memory chips have been ordered by Apple—made a spectacular trading debut on Monday and briefly became the most valuable publicly traded company in mainland China. Reflecting the rising stock prices of other major memory chip manufacturers such as Samsung, SK Hynix, and Micron amid a surge in demand driven by AI.

CXMT’s shares soared 466% following its stock market debut on Monday, closing the day at RMB 49 ($7.24).

Earlier that day, CXMT’s market capitalization briefly surpassed that of internet giant Tencent. Surging to $547,000 million and making it the most valuable publicly traded Chinese company.

Hong Kong-listed Tencent regained the top spot by the end of the trading day. CXMT remains the most valuable publicly traded company in mainland China with a market capitalization of just under $490,000 million.

Biggest IPO debut on China market

The chipmaker had the biggest market debut in China since the Agricultural Bank of China went public in 2010. Raising at least $8.5 billion through the sale of 6.7 billion shares as part of its IPO.

In contrast to SpaceX’s record-breaking market debut last month, which was oversubscribed by more than four times. Bloomberg reports that the company’s IPO was oversubscribed by 212 times.

The AI-driven rush to buy memory chips has significantly impacted the consumer electronics industry and forced manufacturers of smartphones, laptops, video game consoles, and other devices to raise prices. Last month, Apple announced a across-the-board price increase for its Mac computers, iPads, and other devices.

Before the price hike, Apple CEO Tim Cook was asked by the Wall Street Journal about the possibility of the company sourcing Chinese memory chip. He said, “I think everything should be on the table… I think we should look at the entire supply chain.” CXMT is currently on a Pentagon blacklist for alleged ties to the Chinese military; however, the Financial Times reported last month that Apple has been lobbying the Trump administration for an exemption to purchase its memory chips.