The fervor for artificial intelligence and semiconductor-related equities shows no sign of cooling down as we move into 2025. This was spectacularly demonstrated by the blockbuster stock market debut of Beijing-based GPU maker Moore Threads, often called "China's Nvidia," on Friday, December 5.
A Stunning Market Entry
Shares of Moore Threads commenced trading on the Shanghai Stock Exchange (SSE) at 650 yuan, representing a staggering 468% surge from its initial public offering (IPO) price of 114.28 yuan. This remarkable first-day pop stands as the second-largest on Chinese markets so far in 2025. The rally didn't stop there; the stock price climbed further to hit an intraday high of 688 yuan, creating instant wealth for investors who secured an allotment during the IPO bidding process.
The explosive debut followed an overwhelmingly robust response to the public offering, which was oversubscribed by more than 4,000 times. Through this IPO, Moore Threads successfully raised 8 billion yuan (approximately US$1.13 billion), making it the second-largest IPO on the Chinese mainland this year, only behind Huadian New Energy Group's July listing.
Confidence Amidst Sanctions and Strategic Push
The massive investor appetite signals strong confidence in China's national economic policies focused on achieving technological self-sufficiency and reducing reliance on foreign semiconductor suppliers. Moore Threads' success is particularly notable because it operates under U.S. sanctions imposed in 2023, which limit its access to advanced chip manufacturing technologies and foundries.
Beijing has notably accelerated the approval process for semiconductor companies seeking to go public. Moore Threads received the green light from the China Securities Regulatory Commission in October, a mere four months after filing its application. This is dramatically faster than the average processing time of about 470 days for applicants on the Shanghai STAR Market last year.
This expedited approval is a clear component of China's broader push for tech independence, especially as the United States continues to tighten restrictions on exports of advanced chips to curb China's progress in AI and related fields.
About Moore Threads: The Company Behind the Hype
Founded in 2020, Moore Threads specializes in developing graphics processing units for artificial intelligence computing. The company was established by James Zhang Jianzhong, who spent 14 years at Nvidia, along with several other former senior GPU engineers from the American chip giant. Zhang currently serves as the Chairman of the board.
Financially, the company is on a high-growth trajectory. Its revenue for the first half of this year reached about 70 million yuan, already exceeding its total revenue for the entire previous year. The company projects its 2025 sales to jump by as much as 242% to 1.5 billion yuan, positioning itself among a growing cohort of Chinese startups aiming to fill the void left by Nvidia's restricted access in China. However, Moore Threads is not yet profitable, reporting a net loss of US$271 million for the first half of 2025. It aims to achieve profitability as early as 2027.
The proceeds from the landmark IPO are earmarked to fund next-generation AI and graphics chip projects and to support the company's working capital requirements. The spectacular debut of Moore Threads underscores a pivotal trend: investor capital is flooding into companies at the heart of the AI hardware revolution, betting on long-term growth despite immediate geopolitical and financial hurdles.
