CXMT Stock Jumps Another 9%: What the Chipmaker Means for the AI Race
CXMT Corp (688825) jumped 8.95% on Friday to close at 57.60 yuan (about $8.51), extending its rally through a fifth trading day on the Shanghai Stock Exchange.
The Chinese memory chipmaker has grown continuously in the few days since its record initial public offering (IPO) last week, pushing its market capitalization to roughly 3.54 trillion yuan, or about $523 billion.
Why CXMT Keeps Climbing
CXMT, short for ChangXin Memory Technologies, listed on Shanghai's STAR Market on July 27. Shares surged as much as 466% on opening day. The move briefly pushed CXMT past Industrial and Commercial Bank of China to become mainland China's most valuable listed company.
The IPO raised 57.92 billion yuan, or about $8.6 billion. CXMT plans to use the funds to expand production and close the technology gap with foreign rivals.
Two forces are driving investor demand. Beijing wants chip self-sufficiency as Washington restricts China's access to advanced semiconductor equipment.
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