CXMT became the most valuable company in the mainland (China)
AI and everything associated like RAM is like a drug for investors?
ChangXin Memory Technologies (CXMT) is the world’s fourth-largest maker of DRAM memory chips, with around eight percent market share.
WTF? I never even heard about them before?
I’ve heard that China was GETTING big on Ram, I didn’t know they were already this significant!
Also kind of insane that 8% of the DRAM market is enough to become the most valuable company in China!
China is really moving up the ladder on chip production.
They are a relatively new manufacturer - but they have been around for a hot minute.
Their production ramp-up has been quite notable though, so much so that there were articles earlier in the year that Apple was seeking an exemption from US import controls in order for them to be able to use some CXMT-sourced RAM in their products.
Stock prices reflect expected future profts, not today’s. This can be shown more easily with dividend stocks but it works similarly with growth stocks. Say a company X announces they’ll be building a factory that makes Y which will be finished in 3 years. You have a good reason to believe Y will sell well at a sizeable profit. You reason that when that starts happening 3 years from now, the company X would make all this new profit and you could even estimate how much extra dividend per share it would be distributed. Based on that, you buy the stock today in order to secure this future dividend. Except I’ve also made the same conclusion and I also buy X stock. Rinse and repeat for as many people who think the same and the price of X stock goes up today with every such sale due to the increased demand. It will likely keep being bid up until a point when buying it for more than that wouldn’t make sense as far as the Y product profit goes because the expected profit wouldn’t cover it. In effect this process “transfers” expected future profits from Y back in time to today via the stock price of X.
In other words, the explosion of CXMT’s price reflects how much more market people expect it to take, profitably.
AI and everything associated like RAM is like a drug for investors?
WTF? I never even heard about them before?
I’ve heard that China was GETTING big on Ram, I didn’t know they were already this significant!
Also kind of insane that 8% of the DRAM market is enough to become the most valuable company in China!
China is really moving up the ladder on chip production.
They are a relatively new manufacturer - but they have been around for a hot minute.
Their production ramp-up has been quite notable though, so much so that there were articles earlier in the year that Apple was seeking an exemption from US import controls in order for them to be able to use some CXMT-sourced RAM in their products.
Stock prices reflect expected future profts, not today’s. This can be shown more easily with dividend stocks but it works similarly with growth stocks. Say a company X announces they’ll be building a factory that makes Y which will be finished in 3 years. You have a good reason to believe Y will sell well at a sizeable profit. You reason that when that starts happening 3 years from now, the company X would make all this new profit and you could even estimate how much extra dividend per share it would be distributed. Based on that, you buy the stock today in order to secure this future dividend. Except I’ve also made the same conclusion and I also buy X stock. Rinse and repeat for as many people who think the same and the price of X stock goes up today with every such sale due to the increased demand. It will likely keep being bid up until a point when buying it for more than that wouldn’t make sense as far as the Y product profit goes because the expected profit wouldn’t cover it. In effect this process “transfers” expected future profits from Y back in time to today via the stock price of X.
In other words, the explosion of CXMT’s price reflects how much more market people expect it to take, profitably.