Shares of chipmaker Moore Threads Technology, dubbed China’s Nvidia (NASDAQ:NVDA), rose as much as 502% as it debuted in Shanghai on Friday.
IPO Proceeds For Massive R&D
Moore Threads’ shares debuted at 650 yuan ($91.92) on the STAR Market, a 468% surge from their IPO price of 114.28 yuan ($16.16), even as the broader market, the CSI300 Index, was trending lower.
The stock touched 688 yuan during the session. The massive debut followed a robust response to the IPO, which was oversubscribed by more than 4,000 times.
Moore secured 8 billion yuan ($1.13 billion) in what stands as the mainland's second-largest IPO of the year, following Huadian New Energy Group Co.'s $2.7 billion IPO in July.
Despite not yet being profitable, the company’s revenue in 2024 grew over threefold, as per its prospectus. It plans to use its IPO proceeds to fast-track core R&D, particularly next-generation, self-developed AI training and inference GPUs. Part of the funding will also go toward strengthening its working capital.
This IPO underscores the rise of Chinese firms building their own AI processors, aligning with Beijing's push to cut dependence on U.S. chip designer Nvidia. The field now includes major players like Huawei and niche developers such as Cambricon, whose Shanghai-listed shares have jumped over 112% so far this year.
Fast CSRC Nod And Strong Backing
Moore Threads fast-tracked its way to market, receiving China Securities Regulatory Commission (CSRC) approval in just 88 days, far quicker than the STAR Market's roughly 470-day average. Its IPO was also bolstered by major backing, including a 7 million-yuan ($0.98 million) pre-IPO investment from DeepSeek and HighFlyer founder Liang Wenfeng, the company's largest institutional investor.
Founded in 2020 by a former Nvidia executive, Zhang Jianzhong, the company was subjected to U.S. sanctions in 2023, which limited its access to advanced chip manufacturing processes and foundries. Zhang served as Nvidia’s Global Vice President and General Manager for China.
Nvidia Caught In US–China Chip Tensions
The surge in Moore Threads’ shares comes at a time when the U.S. is imposing strict regulations on chip exports to China. A bipartisan group of U.S. senators has proposed the Secure and Feasible Exports Chips Act, which would bar Nvidia from selling its high-end H200 and next-generation Blackwell processors to China for 30 months. This act is aimed at restricting China’s access to advanced AI technology.
On the other hand, China has essentially pushed Nvidia out of its semiconductor market, ending the company's years-long dominance and slashing its AI-chip share "from 95% to 0%," in the words of CEO Jensen Huang.
In November, regulators were said to have barred foreign AI chips, including those from Nvidia, from all new state-funded data center projects, mandating that any project under 30% completion replace imported hardware entirely.
The company scores high on Momentum, Growth, and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the long term, but weaker in the short and medium terms. Click here for deeper insights into the stock, the company, its peers, and competitors.
Price Target: On a year-to-date basis, Nvidia stock surged 32.59% as per Benzinga Pro. On Thursday, the stock climbed 2.12% to close at $183.38.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
