‘Chinese Nvidia’, makes spectacular stock market debut despite sanctions
Moore Threads, a Beijing-based company specialising in graphics processing units (GPUs) often dubbed the ‘Chinese Nvidia,’ made a remarkable debut on the Shanghai Stock Exchange. Following its IPO of about €944,500,000 the shares surged by more than 400% to 584.98 yuan (€71.03), far above the offering price of 114.28 yuan (€13.88).
The success of Moore Threads is all the more notable because the company was hit by US sanctions in 2023, which restricted its access to advanced chip manufacturing processes and production facilities.
The IPO was led by CITIC Securities as lead manager, with BOC International Securities, China Merchants Securities and GF Securities acting as co-lead managers. Although Moore Threads is not currently profitable, the company said that the proceeds from the IPO are essential to fast-track key research and development projects. These include the development of a new generation of in-house designed GPU chips for AI training and inference. Part of the funds will also be used to strengthen working capital.
The success of Moore Threads illustrates the growing trend among Chinese companies to develop AI processors. That movement is driven by China’s ambition to reduce its reliance on US chip designer Nvidia.
Other notable players include technology giants such as Huawei and specialised firms such as Cambricon, whose shares on the Shanghai Stock Exchange have risen by more than 100% this year.
For years, Washington has imposed various export restrictions on Nvidia, limiting the company’s ability to sell its most advanced AI chips to China. Recently, China blocked the import of Nvidia chips, encouraging the use of domestic alternatives such as Moore Threads. Newcomers like Enflame Technology and Biren Technology are also vying for a share of the emerging GPU market and aim to capitalize on the demand previously served by Nvidia.
Business AM
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