CXMT Corp made a historic entrance onto the Shanghai Stock Exchange this Monday, with its shares skyrocketing 466% on their first day of trading. Following Asia’s largest IPO of the year, the chipmaker saw its market capitalization climb to a staggering 3.3 trillion yuan ($487.73 billion), officially crowning it as China’s most valuable listed company. The stock surged from an IPO price of 8.66 yuan to close at 49 yuan, marking a significant milestone for a firm that has become the cornerstone of Beijing’s ambition to achieve semiconductor self-sufficiency amidst tightening U.S. export restrictions.

Despite the excitement, some market analysts are sounding the alarm, warning that the intense rally may be driven more by speculation than long-term fundamentals. With only a small portion of shares currently available for public trading, the stock is prone to extreme volatility, and experts like those at Trinity Synergy Investments have labeled the current pricing as excessive. Nevertheless, the company is banking on the ongoing global memory chip shortage and robust AI-driven demand to sustain its momentum, projecting a dramatic turnaround with profits expected to reach as high as 75 billion yuan for the first half of the year.