The extraordinary debut pushed the semiconductor company to the top of China’s stock market by valuation, despite recent weakness in global technology shares and growing concerns over stretched valuations in the artificial intelligence sector.
According to Dealogic data, CXMT recorded the largest first-day gain among the world’s 10 biggest IPOs this year by deal value. The jump also marked the biggest debut performance among Chinese companies valued at $5 billion or more in IPO data dating back to 2006.
CXMT shares closed at 49 yuan, compared with their IPO price of 8.66 yuan per share, after reaching an intraday high of 55.03 yuan. The rally lifted the company’s market capitalization to about 3.3 trillion yuan ($487.73 billion), significantly higher than the roughly $85.5 billion valuation recorded during the IPO process.
The surge made CXMT China’s most valuable listed company, overtaking banking giant Industrial and Commercial Bank of China, which had long held the position as the country’s largest publicly traded firm by market value.
The strong debut comes as China continues efforts to strengthen its domestic semiconductor industry amid increasing restrictions from the United States on advanced chip technology exports. CXMT has emerged as a key player in Beijing’s push for greater self-reliance in strategic technologies, including artificial intelligence and high-performance computing.
The company’s first-day performance also surpassed the debut of China Resources New Energy, whose shares more than doubled after its $3.6 billion IPO earlier in the month.
Investor Interest and Valuation Concerns
The successful listing offered a clear indication of investor appetite for major Chinese semiconductor companies as markets navigate volatility linked to the global AI investment boom.
Trading activity in CXMT shares was exceptionally strong, with about 141.1 billion yuan worth of shares changing hands in Shanghai on Monday. Local media reported that the company became the first A-share stock to exceed 100 billion yuan in daily turnover.
While enthusiasm around CXMT was high, some analysts warned that the stock’s rapid rise could reflect excessive optimism rather than long-term fundamentals.
Jing Jie Yu, an equity analyst at Morningstar, said investor demand was largely driven by the opportunity to gain exposure to the current memory chip cycle.
Yu noted that the IPO valuation was initially attractive compared with international competitors, with CXMT priced at about one times Morningstar’s estimated 2027 price-to-book value, compared with approximately 2.1 to 2.3 times for global peers. However, he cautioned that the first-day rally appeared excessive given the cyclical nature of the memory industry and the potential long-term impact of US restrictions on advanced chipmaking technology.
The company’s valuation, now approaching half that of US chipmaker Micron, has also raised concerns among some investors that the stock could be entering speculative territory.
“The (CXMT) stock is too expensive and smells of speculation,” said Yuan Yuwei, hedge fund manager at Trinity Synergy Investments, adding that “it's hard to say the optimism is sustainable.”
Growing Role in China’s Semiconductor Strategy
CXMT, formerly known as ChangXin Memory Technologies, raised 57.92 billion yuan ($8.6 billion) through the IPO, making it the largest semiconductor listing ever recorded on mainland China’s stock exchanges.
The fundraising surpassed Semiconductor Manufacturing International Corporation’s (SMIC) $7.5 billion Shanghai share sale in 2020. CXMT’s proceeds could increase further to 66.61 billion yuan if an over-allotment option is fully exercised.
The company’s rise comes amid strong global demand for memory chips, driven partly by artificial intelligence development and the expansion of data centres. Technology companies worldwide have committed hundreds of billions of dollars toward AI infrastructure, increasing demand for advanced semiconductor components.
Ellie Wang, an analyst at technology research firm TrendForce, said the memory market remains tight, with price increases expected to continue through 2027.
“The memory market remains tight with price increases expected to continue through the end of 2027,” Wang said.
“Amid persistent supply shortages, many customers are seeking to diversify their memory supplier base, which should significantly benefit CXMT and create more business opportunities.”
AI Demand Drives Growth Outlook
In its IPO prospectus, CXMT said rising demand from artificial intelligence applications had contributed to the latest recovery in the memory chip market. However, the company also warned that the sector could face challenges if AI investment slows or if competitors increase production too aggressively.
CXMT expects its first-half revenue to rise more than sevenfold to between 110 billion yuan and 120 billion yuan. The company also forecasts net profit of between 66 billion yuan and 75 billion yuan, marking a significant turnaround from a loss recorded during the same period a year earlier.
Despite the impressive market debut, analysts say CXMT’s future performance will depend on its ability to maintain growth, compete internationally, manage technology restrictions, and benefit from the ongoing expansion of artificial intelligence infrastructure.