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Moore Threads surged 411 percent in its first trading session on the Shanghai STAR Market as the stock jumped from its IPO price of 114.28 yuan to 584.98 yuan. The Beijing-based chipmaker raised nearly 8 billion yuan from the offering, which valued the business at about $7.6 billion. Demand from retail investors soared as subscriptions reached 2,750 times the available allocation.
China’s focus on homegrown chips continues to shape the country’s semiconductor market. Regulators eased STAR Board rules earlier this year and allowed unprofitable firms to list faster. This shift created a clearer route for Moore Threads to enter public markets as GPU demand rises across the economy.
The push for domestic chip capacity follows years of U.S. restrictions on Nvidia’s advanced AI hardware. Washington restricted the export of top-tier NVIDIA chips, while Beijing also moved to block imports of the same products. These steps boosted interest in Chinese GPU firms that could take a larger share of the demand gap.
Fan Zhiyuan of Sinolink Securities said Moore Threads benefits from the trend toward local chip replacement as trade frictions increase. He noted that the firm is China’s only producer of general-purpose GPUs. This position gives the company a strategic role as AI and graphics workloads expand across multiple sectors.
Other players in the field include Huawei and Cambricon. Cambricon's stock has more than doubled this year on the Shanghai exchange. New entrants such as Enflame Technology and Biren Technology continue to chase opportunities created by the shift away from NVIDIA.
Bloomberg data shows Moore Threads IPO is now the second most pursued mainland public offering above $1 billion since 2022. Retail investors flooded the sale, even after the greenshoe option increased the available shares. Strong interest followed a period where market cash stayed on the sidelines and waited for new listings.
Funding from the IPO will flow into next-generation AI and graphics chip projects. The company also plans to deploy part of the capital to expand working resources as production grows. These plans arrive as China seeks broader AI independence and reviews more semiconductor IPO applications.
MetaX Integrated Circuits Shanghai Co., a close peer, opened its own subscriptions on the same day. At the same time, Yangtze Memory Technologies Co. and ChangXin Memory Technologies Inc. are considering onshore listings that may reach valuations of 300 billion yuan. This wave of activity raises the question: how will these large deals reshape capital flows across China’s semiconductor market?
Recent IPOs have seen sharp first-day surges as investors returned after months of caution. Fund manager Chen Zunde said strong debuts make sense after long stretches of limited activity. He also noted that large offerings may shift capital away from competing firms and create wider pressures in the market.
Moore Threads reported a net loss of 724 million yuan in the first three quarters of the year. Yet the loss narrowed by 19 percent compared with the same period in the prior year. Revenue grew 182 percent and reached 780 million yuan as the firm scaled sales across its GPU products.
A Dec. 4 filing placed the company’s price-to-sales ratio at 123 times the IPO price. Peer firms trade at an average multiple of 111 times. This difference sparked concerns about valuation risks during early trading. The company even asked its lead sponsor to remind investors about potential pricing volatility before the listing.
By Friday’s close, the stock still traded at more than five times its IPO price. Volume stayed high through the session as investors reacted to the debut and assessed the sector’s outlook. The strong demand reinforced interest in China’s semiconductor shift and set the stage for more deals across the market.
Related: NVIDIA Stock Slips as China’s DeepSeek Launches New Open-Source AI Model
Moore Threads’ explosive 411 percent debut signaled strong demand for China’s growing GPU industry and the nation’s wider push for domestic chip capacity. Rising semiconductor listings, tighter NVIDIA limits, and heavy retail interest shaped the market’s reaction, showing how investor attention continues to shift toward local technology leaders.
