China’s Biggest AI Chip IPO Explodes On Debut, Stock Soars More Than 400 Percent

China’s AI semiconductor ambitions just received a major boost as Moore Threads Technology Co. staged one of the most explosive market debuts in recent Chinese IPO history. The Beijing-based AI chipmaker surged roughly 425 percent in its first day of trading in Shanghai after raising 8 billion yuan (about $1.13 billion), instantly securing a valuation near 282 billion yuan, as reported by Bloomberg.

The sheer demand was striking. The retail portion of the IPO was oversubscribed more than 2,700 times, even after regulators forced a clawback to limit speculation. Analysts said the debut represents the biggest first-day spike for any major IPO since China overhauled its listing rules in 2019.

Founded by former Nvidia executive Zhang Jianzhong in 2020, Moore Threads originally targeted gaming and rendering graphics chips before pivoting into AI processing accelerators used to train large language models. The move positioned the company as one of the fastest-rising domestic replacements for Nvidia, whose advanced chips face heavy US export restrictions.

Investor enthusiasm reflects China’s race to achieve semiconductor independence. With Washington tightening cutting-edge chip access, Beijing has poured capital and policy support into homegrown chip producers. As a result, Moore Threads now finds itself grouped with Huawei and Cambricon Technologies as national strategic players in the AI era.

Some analysts view the IPO as both a milestone and a warning signal. Shao Qifeng of Ying An Asset Management said such dramatic first-day surges historically have indicated peaks of investor excitement rather than long-term stability. “These events are remembered, but they have not always been positive indicators for their sectors,” he noted.

Despite enthusiasm, Moore Threads is not yet profitable. The company reported a net loss of 724 million yuan over the first three quarters of the year, though that figure narrowed 19 percent from a year earlier. Revenue, meanwhile, surged 182 percent to 780 million yuan. Its valuation remains lofty, with a price-to-sales ratio exceeding 120, above sector averages.

A crucial turning point came in 2023 when the US added Moore Threads to its trade blacklist, temporarily derailing operations and forcing restructuring. Instead of scaring investors, the incident fueled domestic support.

The momentum may soon spread. MetaX Integrated Circuits began subscription activity, while major Chinese memory firms Yangtze Memory Technologies and ChangXin Memory Technologies are weighing multibillion-yuan listings of their own. Investors see Moore Threads’ debut as a signal that China’s AI chip race is accelerating and capital is ready to follow.