AI Bubble? Moore Threads Surges in IPO Debut on STAR Market

Moore Threads officially listed on the Shanghai Stock Exchange's STAR Market today, surging over 400 percent to once again display the artificial intelligence (AI) frenzys in the capital market. The company is frequently labeled "China's Nvidia," underscoring its pivotal role in the nation's push for technological self-reliance.

Moore Threads' initial public offering (IPO) was a stunning success. Its offering price was 114.28 yuan (US$15.87) per share, and the stock opened at 650 yuan. Investors who successfully won a ballot (500 shares) reaped a paper profit exceeding 260,000 yuan, making it the most profitable new stock in the Chinese market this year. The shares closed at 600.50 yuan, with a gain of 425.46 percent. This surge propelled its closing market capitalization to 282.25 billion yuan, making it the fifth most valuable company on the STAR Market.

Founded in 2020 by former Nvidia China head Zhang Jianzhong, Moore Threads focuses on the design and R&D of full-function GPU chips. The company's trajectory aligns with the national strategy to achieve high-level technological self-sufficiency and build a secure and reliable computing ecosystem.

To date, it has successfully mass-produced five chips, iterated four generations of GPU architectures and intelligent SoC (system-on-a chip) products, and established a diverse product portfolio covering chips, graphic cards, intelligent computing clusters for AI, scientific computing and graphics rendering.

Its flagship intelligent computing product, the MTT S5000, is competitive even when compared with Nvidia's products. The company has invested over 4.3 billion yuan in R&D between 2022 and June 2025.

The massive appreciation in Moore Threads' share price signals strong market confidence in domestically produced, high-end GPUs (graphics processing units) and the immense potential of Chinese AI companies, suggesting the sector is far from a bubble.

UBS analyst Xiong Wei remarked on Friday that AI investment (including capital expenditures by major internet firms), application commercialization, and domestic substitution (especially in chips) are the most discussed topics in the market, adding that they do not believe the Chinese market is experiencing a bubble.

The rise of China's AI chip titans

The ascent of Moore Threads is part of a broader movement among domestic chip developers, including Cambricon Technology and the soon-to-be-listed Meta X, who are collectively dubbed "China's Nvidias". Their rise underscores their strategic importance in bridging the technology gap created by global export restrictions, such as the United States' ban on Nvidia's H20 chip and more advanced products' exports to China.

This sector is also fueled by strong state-level support. Sinolink Securities stated that the long-term process of replacing imported chips with domestic alternatives is irreversible, with Chinese mainland chipmakers ramping up production to meet supply demand.

Cambricon, another key player, briefly became the mainland's most expensive stock in August. Its shares closed at 1,587.91 yuan on August 28, momentarily surpassing premier liquor maker Kweichow Moutai before ceding the title back. Although its stock has since pulled back, Cambricon remains the STAR Market's No. 2 firm by market value, at 571.38 billion yuan by Friday, symbolizing the new era of investment in AI's transition from labs to capital markets.

Before that, Cambricon wowed investors by reporting first-half revenue that skyrocketed 43 times year-on-year, turning a profit of 1 billion yuan on 2.9-billion yuan revenue.In response, Goldman Sachs raised its 12-month price target for Cambricon to 2,104 yuan (now 1,355 yuan), citing robust results and expectations for increased AI chip shipments.

Shanghai-based MetaX also started its online IPO subscription offering on Friday, with an IPO price of 104.66 yuan.

The continued surge of Chinese AI chip firms is expected to sustain as they successfully attract new clients, including major Chinese internet giants and cloud service providers.