Nomura Sets CXMT Price Target at 116 Yuan, Valuing Chipmaker at $1 Trillion Ahead of Debut
Nomura initiated coverage on CXMT, setting a RMB 116 price target for the Chinese memory-chip maker that implies roughly a $1 trillion market capitalization. The brokerage assigned a 20x P/E multiple, arguing the stock deserves twice the valuation traded by Micron.
The target implies a 13.4 times increase from the IPO price and arrives three hours before the stock begins trading on the Shanghai exchange. The benchmark establishes a pre-market valuation marker significantly higher than the $85 billion market capitalization from the initial offering.
From the sources (20 posts)
@financialjuiceCXMT inks five-year ByteDance supply agreement valued over $7 billion: sources
@financialjuiceCXMT plans expansion that may more than double monthly wafer output: sources
@businessInvestors are looking to Monday’s trading debut of CXMT to help renew a rally in Chinese semiconductor stocks that has been on pause ahead of the memory giant’s IPO
@cnbcChina's largest memory chipmaker sparks fears of a cash drain before blockbuster IPO
@teortaxestexLmao I think this isn't just about CXMT's strength (which is obvious given their near monopoly position). It's that Huawei has competitors. it's not clear they "deserve" chips more than half a dozen other supernode vendors.
@reutersThe global buildout of AI data centers has transformed memory chips into one of the world's most sought-after products, sparking battles over pricing and a scramble for supply. China’s chip makers are now picking clients and dictating price
@reutersbizThe global buildout of AI data centers has transformed memory chips into one of the world's most sought-after products, sparking battles over pricing and a scramble for supply. China’s chip makers are now picking clients and dictating price
@reutersChina’s memory chip makers ride AI boom to new power — and U.S. scrutiny
@wallstengineCHINESE MEMORY IS NO LONGER THE CHEAP ALTERNATIVE China’s largest DRAM maker, CXMT, is reportedly charging more than Samsung’s roughly $1,240 price for comparable 64GB DDR5 server memory modules. CXMT spent years competing as a cheaper, s
@wallstengineReuters: For months, Chinese chip manufacturer, CXMT had been hiking prices on Huawei, one of the country’s biggest technology companies. The chipmaker held firm when Huawei demanded relief from the escalating costs, according to two people
@stocksavvyshayChina’s largest DRAM maker CXMT is reportedly charging more than Samsung for comparable 64GB DDR5 server memory. The company has also secured over $10B in long-term deals with ByteDance and Tencent as AI demand tightens supply. https://t.c
@reutersHow the 'twin stars' of China, CXMT and YMTC, changed the chip game
@jukan05Advance notice: CXMT is going public tomorrow.
@jukan05@psyduckcapital I wouldn’t be surprised if it hits a 5 trillion RMB valuation on its first day of trading.
@jukan05@psyduckcapital They say the Korean stock market fell on Friday because Chinese funds sold stocks to participate in the CXMT IPO. We’ll have to wait and see whether it falls again tomorrow.
@jukan05@zephyr_z9 Korean sell-side analysts say that if CXMT commands a high valuation, Samsung and SK Hynix will also be rerated higher—but we’ll see.
@zephyr_z9@jukan05 i also believe this, but in the short term, flows will go down
@jukan05Nomura just initiated coverage on CXMT, assigning it a price target of RMB 116 and arguing that it deserves a 20x P/E multiple—twice Micron’s valuation. That implies a 13.4x increase from the IPO price and a market capitalization of roughl
@zephyr_z9IPO market cap - $85B Nomura - $1T 🤣🤣🤣🤣🤣
@zephyr_z9CXMT will start trading in 3 hours It will be the craziest IPO I have ever seen