CXMT has overtaken Tencent Holdings to become the world’s most valuable Chinese company, highlighting the growing investor appetite for AI-related hardware and semiconductors.

The Chinese memory-chip maker is now valued at $524B, surpassing Tencent’s $510B market cap.

CXMT’s shares surged 467% on debut and have gained another 8%, as investors view the company as a key proxy for China’s AI ambitions and semiconductor self-sufficiency.

CXMT is also the world’s fourth-largest producer of DRAM, a critical component for smartphones and advanced AI servers.

Meanwhile, Tencent’s shares are down more than 26% this year amid concerns over its growing AI investments and pressure to catch up with competitors.