Chinese chipmaker CXMT surges nearly 500% in Shanghai stock market debut

Shares of Chinese chipmaker CXMT surged 466% on its first trading day on the Shanghai Stock Exchange, closing at 49 yuan compared to the IPO price of 8.66 yuan. Market value rose to $484 billion, close to Tencent's $514 billion. The company, the fourth-largest DRAM maker, benefits from AI demand and focuses on low-cost chips for home appliances.

Shares of Chinese chipmaker CXMT surged 466% on its first trading day on the Shanghai Stock Exchange, closing at 49 yuan (about $7.30), compared to the IPO price of 8.66 yuan. The company's market value rose to $484 billion, close to tech giant Tencent's $514 billion. CXMT is the fourth-largest DRAM chip maker, after SK Hynix, Samsung, and Micron. The company focuses on cheaper chips for home appliances and benefits from huge AI demand and the global chip shortage. The successful IPO comes two weeks after SK Hynix raised over $26 billion in the US. CXMT became profitable this year, with a profit of $4.9 billion in the first quarter, compared to losses of about $10 billion over the past decade. The company was founded in 2016 by Zuo Yiming, who serves as chairman.