CXMT overtakes Tencent as most valuable Chinese firm

Crossover reflects investors’ continued preference for AI-linked hardware over traditional Internet champions. CXMT, a Chinese semiconductor and memory chip company, has overtaken Hong Kong-listed Tencent as the world's most valuable Chinese firm. CXMT's market capitalization stands at US$524 billion, slightly higher than Tencent's valuation of US$510 billion, which has taken a hit due to mounting concerns over its increasing AI investments.

CXMT's ascent highlights the market's preference for AI-driven hardware, with shares up 8 percent following its initial 467 percent debut surge. Gary Tan, a portfolio manager at Allspring Global Investments, noted that CXMT exceeding Tencent is a market signal that chips are the new clicks. As a key player in China's AI ambitions and semiconductor self-sufficiency, CXMT's shares have surged 8 percent since its debut.

The Hefei, Anhui-based company is also the world's fourth-largest producer of dynamic random-access memory, crucial for smartphones and advanced AI servers. MSCI's inclusion of CXMT in the MSCI China All Shares Index on Aug 10 further bolstered its momentum. Meanwhile, Tencent, known for its messaging app WeChat and game developer Riot Games, has seen its shares drop over 26 percent in 2026.

The tech giant has doubled its AI spending in the June quarter, reflecting efforts to catch up with competitors, which has resulted in a 4.5 percent decline in its Hong Kong-listed stock on Thursday.