Chang Xin Memory Technologies (CXMT) reported blockbuster earnings Friday, driven by a global AI-induced memory shortage. Revenue soared to 150.31 billion yuan ($22.36 billion) for the first half of the year, nearly a tenfold increase and beating estimates. Net profit also topped guidance at 77.61 billion yuan.

Founded in 2016 with state backing and based in Hefei, CXMT is at the forefront of China's push for semiconductor self-sufficiency. The company has overtaken Tencent to become China's most valuable listed company, with a market cap nearing $600 billion. Shares more than quintupled in July trading.

The surge highlights how AI demand is tightening global supply and pushing prices higher. Research firm Trend Force estimates server DRAM prices could climb another 270% this year. Despite its meteoric rise, CXMT still trails industry leaders Samsung Electronics, SK Hynix and Micron, who control over 90% of the global DRAM market.

Analysts say the company lags by two or three generations in advanced AI memory products. Beijing's rivalry with the U.S. is accelerating investor bets that Chinese customers will increasingly replace foreign chips with domestic alternatives like CXMT. Morgan Stanley predicts CXMT's share of global DRAM bit shipments will rise to 15% by 2030 from 11% this year, driven by strong demand from China's AI infrastructure buildout.

Asked about easing restrictions to tap Chinese memory chip makers, Apple Chief Executive Tim Cook told the Wall Street Journal that all options need to be on the table.