What CXMT must do to grow global memory market share and build on its surge: analysts
Chinese chipmaker CXMT has seen a massive surge in market value and is projected to significantly increase its global DRAM market share by 2028. Analysts suggest this growth is driven by high demand for AI computing and China's push for domestic semiconductor self-sufficiency.
Why it matters
The rise of a major Chinese DRAM supplier challenges the dominance of established South Korean and US firms in the global semiconductor market.
Shares of ChangXin Memory Technologies (CXMT) could more than double from Monday’s close as the Chinese chipmaker expands its global dynamic random-access memory (DRAM) market share to 18 per cent by 2028, according to Nomura, which set a price target of 116 yuan.
The listing of CXMT, the country’s top maker of DRAM chips, sparked investor momentum as its shares surged 466 per cent to close at 49 yuan.
It has become the most valuable company listed on the mainland Chinese market. Its market cap of 3.28 trillion yuan (US$484.6 billion) is larger than US chip giant Intel, valued at about US$464 billion.
Despite trailing the memory industry’s three dominant suppliers – South Korea’s Samsung Electronics and SK Hynix, and US firm Micron Technology – CXMT could expand its global market share amid rapid capacity growth and rising demand for artificial intelligence computing power, analysts said.
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