The DRAM maker ended Thursday worth $524 billion against Tencent's $510 billion.
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Tencent reported second-quarter revenue of RMB 204.8 billion ($30.3 billion) on Wednesday, up 11% year-over-year, with capital expenditure climbing 176% to RMB 52.8 billion as the company bought computing capacity for its AI models and agents. Free cash flow went negative at RMB 13.8 billion. Tencent's U.S.-listed shares dropped 5.34% following the report, extending a decline that's reached 26% so far in 2026, even as domestic games revenue grew 17% and marketing services revenue rose 22%.
A slice of that spending will flow to the company that just displaced it. Alongside the June agreement with Tencent, CXMT signed a five-year server DRAM deal worth more than $7 billion with ByteDance in July, and server products grew from 8.4% of CXMT's revenue in 2024 to 26.5% in 2025. Investors are penalizing the buyer of AI hardware while rewarding its supplier, in part over the same purchase orders.
CXMT held 7.67% of the global DRAM market in 2025, according to sales figures in its IPO prospectus. Its $524 billion market cap now sits at roughly half of Micron's $1 trillion and about 60% of SK hynix's $880 billion, and the company plans to close the output gap with a sixth mega-fab and a 30% DRAM share target by 2030 , though it still lacks the EUV lithography tools its rivals use.
Chinese memory maker CXMT posts blistering 466% leap in Shanghai IPO
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/cxmt-overtakes-tencent-to-become-chinas-most-valuable-company-17-days-after-its-ipo#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.