CXMT Corp. has overtaken Tencent Holdings to become the most valuable company in China.

CXMT’s market capitalization reached approximately $524 billion on Thursday. Tencent’s valuation stood at $510 billion during the same period.

The shift follows CXMT’s recent IPO on Shanghai’s STAR Market. Shares in the memory chip manufacturer surged more than 460% in just over two weeks.

Intense investor demand for artificial intelligence hardware fueled the valuation increase. Conversely, Tencent shares declined amid concerns over rising AI-related expenditures.

The event marks a significant rotation of capital from internet platforms to the semiconductor sector. This trend aligns with China’s strategic push for chip self-sufficiency.