ChangXin Memory Technologies (CXMT) is now the world's most valuable Chinese company after passing Tencent today, with a market cap of $524 billion against the Internet giant's $511 billion. CXMT's own shares fell 1.2% on the day; the crossover happened because Tencent fell further after disclosing a 176% surge in capital spending on AI infrastructure in its second-quarter results. In doing so, CXMT has taken the top spot less than three weeks after its 466% first-day surge in Shanghai. Tencent is itself a CXMT customer, having signed a $3 billion server DRAM agreement with the memory maker in June.
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%.
