Prime Highlight
- Moore Threads surged more than 400% on its Shanghai trading debut after raising $1.1 billion, signaling strong investor confidence despite U.S. sanctions.
- The company plans to use the new capital to accelerate development of next-generation, self-developed AI training and inference GPUs, reinforcing China’s push for chip independence.
Key Facts
- The stock is trading at 98 yuan, over five timesits IPO price of 114.28 yuan, marking one of the strongest debuts in China’s semiconductor sector.
- S. export controls have blocked Moore Threads and other Chinese firms from accessing advanced chip-making technology, prompting the rapid growth of domestic alternatives such as Huawei, Cambricon, Enflame, and Biren.
Background
Moore Threads, a Beijing-based graphics processing unit (GPU) developer widely known as “China’s Nvidia,” surged more than 400% during its trading debut in Shanghai after completing a $1.1 billion initial public offering. The stock opened strongly and is now trading at 584.98 yuan, more than five times its IPO price of 114.28 yuan.
CITIC Securities served as the lead underwriter for the listing, while BOC International Securities, China Merchants Securities, and GF Securities acted as joint book runners. The company said the fresh capital is essential for speeding up research and development of next-generation, self-developed AI training and inference GPU chips. Part of the proceeds will also support its working capital needs.
Moore Threads’ strong debut comes even as the company remains under U.S. sanctions imposed in 2023. These restrictions have blocked it from getting advanced chip-making technology and using overseas factories. Even with this pressure, the firm has become a key player in China’s push to depend less on American chipmakers, especially Nvidia.
China’s push to build a self-sufficient semiconductor ecosystem has encouraged the rise of several domestic AI chip developers. Alongside Moore Threads, companies like Huawei and Cambricon are growing quickly. Cambricon’s shares have already risen more than 100% this year, showing that investors are very interested in China’s own chip industry.
U.S. export controls have prevented Nvidia from selling its most advanced AI chips to China for years. Recently, China has also taken steps to restrict imports of Nvidia products as it promotes local alternatives. Newer companies like Enflame Technology and Biren Technology are entering the market as well, aiming to meet the rising GPU demand previously filled by Nvidia.
Chinese regulators continue to clear more semiconductor IPOs, accelerating the country’s drive for AI and chip independence.
