Chinese chipmaker CXMT opened in Shanghai with a 500% jump, trading at Rmb54.65 after an IPO priced at Rmb8 artificially. The surge pushed its market cap to Rmb3.65tn ($539bn), eclipsing Hong Kong‑listed Tencent ($514bn). Analysts noted the enthusiasm matched the booming AI memory‑chip demand.

On debut, CXMT issued 6.688bn shares and raised Rmb57.9bn ($8.5bn), the biggest mainland IPO since the 2010 Agricultural Bank of China issue. An over‑allotment option of 1bn shares could lift proceeds to nearly $10bn if exercised.

Investors are chasing the company's role in the AI supply chain; its price‑to‑earnings ratio has surged above 1,800, justified by sharp profit growth. CXMT’s first‑quarter profit of Rmb33bn ($4.9bn) reversed a decade‑long loss streak, largely from lower‑end chips used in PCs and home appliances.

The firm operates DRAM wafer plants in Beijing and Hefei and plans to expand capacity to 350,000 wafers/month by year’s end, approaching Micron’s 385,000. Despite US export controls limiting access to ASML tools, CXMT is developing high‑bandwidth memory for AI data centres, reflecting Beijing’s push for a self‑sufficient AI ecosystem.