CXMT Corp.’s first-half revenue increased nearly tenfold, accompanied by a significant rise in profit, indicative of the heightened demand for AI hardware that has positioned the memory chipmaker as China’s most valuable enterprise. The Hefei-based company’s revenue expanded to 150.3 billion yuan in the first six months, more than double the sales it raked in across all of 2025. It reported a profit of 77.6 billion yuan, in contrast to a loss recorded in the previous year. The impressive earnings emerged a month after CXMT executed China’s second largest initial public offering in Shanghai, ultimately raising 66.6 billion yuan with an overallotment option. The company ranks as the fourth-largest producer of DRAM globally, experiencing a surge in demand and prices for its products due to the rise of artificial intelligence and the hardware-intensive data centers that support it.
CXMT attributed its impressive growth to a global constraint in DRAM supplies, a trend it indicated will persist in the latter half of the year. The company announced that its next-generation LPDDR6 memory product, suitable for smartphones and tablets, has been delivered to clients for validation and is now positioned for mass production. CXMT’s stock has consistently appreciated since its debut, and the company has now surpassed Tencent Holdings Ltd. to emerge as China’s largest by market capitalisation, signifying a notable transformation in the nation’s tech landscape. Despite this, the chipmaker is valued at a considerable discount compared to its global counterparts, as per Goldman Sachs, which assesses its present valuation at approximately 10 times the projected earnings for 2027. The multiple is predicated on projections indicating that net income is expected to exceed 361 billion yuan by 2027, a significant increase from an estimated 161 billion yuan in the current year.
The results indicate a significant acceleration in growth for the Chinese memory chipmaker, which had previously faced substantial losses while competing in a market characterised by commodity products. CXMT now benefits from the same acute shortage of memory that has propelled the valuations of Samsung Electronics Co., SK Hynix Inc., and Micron Technology Inc. All those companies are prioritising the production of high-end memory required to manufacture AI accelerators from Nvidia Corp. As the premier alternative to international suppliers, CXMT epitomises China’s endeavour to diminish dependence on foreign technology. Founded by US-trained chip veteran Zhu Yiming, CXMT is also engaged in the development of its own high-bandwidth memory, a sophisticated category of semiconductor utilised in AI accelerators. However, it did not disclose any advancements in this area in the earnings release on Friday.
The company has indicated that it will allocate the proceeds from the IPO toward capacity expansion in an effort to compete more effectively with larger rivals. It has already increased its expenditure in the first half of the year. Research spending increased by 87%, reaching 6.86 billion yuan. The company expanded its research and development team by 61% year-over-year, reaching nearly 7,500 personnel. In a demonstration of CXMT’s increasing influence, Apple Inc. is reportedly engaged in discussions to acquire its memory chips, in conjunction with the Chinese supplier Yangtze Memory Technologies Co. According to a report in July, this would pertain to Apple devices marketed in China. The discussions have raised alarms in Washington, as a contingent of US senators is urging Apple to abandon its efforts to depend on Chinese suppliers. The company was recently blacklisted by the US Department of Defence, a move CXMT on Friday stated will not affect its daily operations.
