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Shares of Moore Threads Technology, a company specializing in graphics processing units and often dubbed “China’s Nvidia,” skyrocketed more than fivefold during their debut on the Shanghai stock exchange today following an initial public offering valued at approximately CNY8 billion (USD1.1 billion).
The stock opened at CNY650 (USD91.94) per share on the Nasdaq-style Star Market, representing a 469% increase from the IPO price of CNY114.28 (USD16.16). It finished the day at CNY600.50, up 425%, resulting in a market capitalization of around CNY282 billion (USD39.9 billion).
Driven by the surge in artificial intelligence development and China’s efforts to achieve independence in chip production, this successful listing sets the stage for other domestic GPU companies—MeTax Technology, Biren Technology, and Enflame Technology—to go public. These efforts are supported by recent regulatory reforms introduced in June to expedite the listing process for innovative firms that are yet to turn profitable.
MeTax’s filings for a Shanghai IPO were approved by China’s securities regulator on November 13, while Biren Technology has submitted its registration in Hong Kong, according to reports.
Moore Threads, which experienced over 4,000 times oversubscription for its IPO, issued 70 million shares, with the funds allocated towards chip development and operational capital. The Beijing-based company has gained a technological edge in China’s comprehensive GPU sector and is advancing the nation’s goal of achieving technological self-reliance, stated James Zhang, the company’s founder, chairman, and CEO, during its roadshow last month.
“Our products already meet or exceed international benchmarks in some performance metrics,” Zhang said. He is a former vice president at Nvidia and served as general manager of Nvidia China.
Founded in 2020, Moore Threads has raised roughly CNY10 billion (USD1.4 billion). Its investors include over 60 prominent entities such as Shenzhen Capital Group, Tencent Investment, ByteDance, HSG, 5Y Capital, and GGV Capital.
Early investors are seeing substantial gains from the IPO. Shenzhen Minghao, the largest external shareholder, now holds a 4.24% stake valued at approximately CNY2.3 billion (USD325.3 million), a 28-fold increase from its initial CNY80 million (USD11.3 million) investment. Other major backers like Sequoia China and Guosheng Capital have each gained more than CNY1.5 billion (USD212.1 million).
Moore Threads’ listing has garnered significant attention, not only because it is China’s first GPU designer to go public, but also because it sits at the crossroads of soaring demand for AI processing power and China’s increasing emphasis on developing domestic alternatives.
The company’s listing occurred amidst a challenging external environment. It was added to the U.S. Entity List in 2023 amid rising technological tensions between China and the United States. This blacklisting, combined with ongoing trade disputes, has complicated Moore Threads’ access to U.S.-made materials, intellectual property, and R&D tools that incorporate American technology, the company disclosed on December 3.
Market research indicates that the share of GPUs—integral for AI computing—could grow to 77.3% by 2029 from 69.9% last year, representing a significant increase. This growth trend suggests that China’s AI GPU market could reach CNY1.03 trillion (USD145.7 billion) by the end of the decade.
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