CXMT’s rise to China’s most valuable firm signals new era for country’s tech sector
AI boom is delivering runaway demand to suppliers of the hardware required, but the market is harder to navigate on the software...
China's AI boom is driving demand for hardware suppliers, with memory chipmaker CXMT overtaking Tencent Holdings as the country's most valuable firm. This shift underscores a potential change away from private-sector giants towards new hardware companies aligned with Beijing's strategic ambitions. The AI infrastructure buildout and robots have been designated key priorities by the Chinese government, with President Xi Jinping advocating for game-changing breakthroughs.
Both hardware and software providers are benefiting from AI demand, but hardware is showing more immediate visibility on revenue and profits. CXMT's public debut has seen a more than 500% increase in value, while other tech stocks have faced volatility. The trend for now is companies aligned with Beijing's priorities, especially those developing hardware or real-world AI applications.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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