+466% IN ONE DAY

A Chinese chip company just went public and it jumped 466% in one single day. It is now the most valuable company in all of mainland China, worth almost half a trillion dollars. Here is what actually happened and the four names that I'm watching. Now the company is CXMT, China's biggest memory chip maker. They make DRAM, which are the memory chips that AI data centers are devouring right now. There is a global memory shortage from the AI build out. CXMT's revenue is up 700% year over year. Well, today they IPO'd in Shanghai, China's biggest listing in years, and the stock went vertical, worth about 488 billion on day one. Here's the context that makes this interesting. US memory stocks like Micron and Sandisk already had massive runs this year and have fallen from their all-time high. And the broader chip index is in a downturn about 20%. So what I think today really shows is that established leaders have already cracked. Now brand new money is piling into the same themes anyways through fresh IPOs. I think that is a pattern worth watching. Unnecessarily buys, but just what each name is telling us. Number one is Micron. You know memory prices are spiking. They can make up around 200% this year. China just minted a half trillion dollar champion whose mission is taking exactly Micron's market. And we've seen China's playbook, you know, solar, LED, fill the market with capacity until the shortage becomes a glut. So Micron is the biggest winner of today's shortage and the most exposed if that playbook repeats. SK Hynix is down 7%. Hynix leads where CXMT can't yet. However, how long does the tech lead last when the government is willing to spend whatever it takes to close the gap? Same question for Sandisk, up almost 471%, almost purely on shortage pricing. If these get sold every time China makes headlines, while the market is saying that the moat is shrinking, as if they shrug it off, then the lead is real protection. Now three is the other side of the trade, the biggest memory buyer on Earth. Every phone and laptop carries these chips. A shortage is a direct tax on Apple's margins, which I will be paying attention to on this upcoming earnings. And four is Constellation Energy. Its memory demand assumes that the data centers are actually get built. The bottleneck there is electricity. Power shortages could restrict 40% of AI data centers by 2027. The constellation is the nuclear operator powering them. Chip trade is crowded. The thing that the chip trade depends on is less so. This is exactly the kind of breakdown that I do in real time in my discord. What I'm watching why as it happens. Link is in my bio if you wanna join and make sure to follow for real time market updates.