CXMT Surges 472% on STAR Market Debut, Becomes A-Share's Most Valuable Firm; US Memory Stocks Fall
CXMT (ChangXin Memory Technologies) surged 472% on its STAR Market debut, opening at 49.50 yuan and hitting an intraday high of 54.65 yuan for a 531% gain. With a market cap of 3.31 trillion yuan, it became the most valuable A-share company. The listing triggered a sell-off in US memory stocks, with Micron down 5%, SanDisk down 12%, and SK Hynix ADR down 8.5%. The IPO raised 29.5 billion yuan, a STAR Market record. CXMT, the world's fourth-largest DRAM maker with 8% market share, faces HBM technology hurdles due to EUV restrictions.
On July 27, CXMT listed on the STAR Market, opening at 49.50 yuan, up 472% from the issue price of 8.66 yuan. The stock hit an intraday high of 54.65 yuan, extending gains to 531%. Based on the opening market cap of 3.31 trillion yuan, CXMT became the most valuable company on the A-share market. On the same day, US memory stocks fell broadly: Micron dropped 5%, flash memory maker SanDisk plunged 12%, SK Hynix's US ADR fell 8.5%, and lithography giant ASML lost over 7%. In mid-July, when CXMT confirmed its listing date, Micron had already tumbled 8% in a single day, pushing its market cap below $1 trillion.
CXMT was founded in 2016 in Hefei. It acquired a patent package from Germany's Qimonda and purchased ASML's DUV lithography machines to build production lines, with cumulative investment exceeding $5 billion. As of 2025, the company still carried significant accumulated losses. In 2026, the explosive growth in AI infrastructure investment diverted high-end memory capacity, causing general DRAM contract prices to surge over 90% quarter-on-quarter in the first quarter of 2026. CXMT's first-quarter 2026 revenue reached 50.8 billion yuan, a year-on-year increase of over 700%. CXMT is currently the world's fourth-largest DRAM manufacturer with an 8% market share, trailing Samsung (36%), SK Hynix (29%), and Micron (24%). The company's IPO raised 29.5 billion yuan, a record for the STAR Market.
Apple has started testing CXMT's DRAM chips for use in devices sold in China, and Apple executives are lobbying Washington for broader approval to use CXMT products. CXMT is listed on the US Department of Defense's 1260H list, which designates companies as having ties to the People's Liberation Army. In the first half of 2026, standard DRAM contract prices surged 55% to 60%. AI server demand for high-bandwidth memory (HBM) caused the three major memory makers to shift capacity toward AI memory, reducing supply for consumer electronics. Apple has raised prices on MacBook, iPad, and other products, with some increases reaching 20%.
CXMT's current product lineup is concentrated on general DRAM, and it faces technical hurdles in HBM, a key component in the AI era. CXMT cannot obtain ASML's extreme ultraviolet (EUV) lithography equipment and must rely on the previous-generation DUV machines to advance process nodes. The industry has reported that CXMT is attempting to develop HBM3 using DUV equipment, with samples already produced, but yield remains a challenge for mass production. At the end of 2024, the Biden administration included HBM in the scope of export controls to China. In 2026, reports emerged that the US is discussing the imposition of stricter unilateral restrictions. CXMT is estimated to have hoarded sufficient semiconductor manufacturing equipment by around 2024 to last through 2026 to 2027.
Micron reported revenue of $41.46 billion for its fiscal third quarter of 2026, a year-on-year surge of 346%, with a gross margin of 84.9%. Analysts estimate that roughly 90% of Micron's DRAM revenue growth in the quarter came from price increases, with shipment growth in the low single digits. In 2020, SMIC rose 202% on its first day of trading on the STAR Market, after which the semiconductor sector entered a prolonged correction. Goldman Sachs and Morgan Stanley believe the current memory cycle will run through 2026 and 2027, with 2028 marking the inflection point.