ChangXin Memory Technologies (CXMT) reached a market value of 4.13 trillion yuan (about $570 billion) on Monday. This makes it China's most valuable listed company. Shares rose 12% to a record 61.80 yuan ($9.16). This increase was driven by a global rally in memory stocks linked to rising demand for artificial intelligence (AI) technologies. The rise follows strong performance from SanDisk, whose shares jumped nearly 30% after its investor day. SanDisk highlighted strong AI-driven demand for memory products. Its forecasts suggest that solid-state drive (SSD) shipments for AI data centers could reach 1,200 exabytes by 2030. This further fuels optimism in the memory sector.
Shift in China's Tech Landscape
CXMT's rise marks a significant shift in China's tech landscape. It moves away from traditional private-sector giants like Tencent and Alibaba. Instead, it focuses on hardware companies aligned with Beijing's strategic goals. The memory chipmaker's growth is seen as key to China's ambitions in AI infrastructure. This change comes amid a broader decline in major tech firms. Tencent's market value is down nearly 27% this year, while Alibaba's is down about 16%. The MSCI China All Shares Net Total Return Index shows that hardware companies now have a larger weighting than online retailers and software firms for the first time since 2020.
Related coverage: Apple Surpasses Nvidia as Most Valuable Company Amid AI Race.
The surge in CXMT's shares is likely to influence the semiconductor sector. This is especially true for companies involved in memory production, as demand for AI-related technologies continues to grow. Investors may also reassess the valuations of other tech firms, especially those in hardware. The focus is shifting towards companies that support AI infrastructure. Watch for upcoming earnings reports from major memory manufacturers. These could provide more insights into the sustainability of this trend.
Based on reporting by: scmp.com, businesstimes.com.sg