The stock market lit up a clear signal that China’s AI chip ambitions are accelerating. Investor excitement, policy momentum, and rising demand for homegrown semiconductor technology converged in a single explosive moment.
In this article, we explore how Moore Threads, often called China’s Nvidia, made headlines with a dramatic market debut that captivated investors and underscored Beijing’s drive toward semiconductor self-reliance. What unfolded on the Shanghai Stock Exchange was more than a debut; it was a statement of intent.
A spectacular market debut
Moore Threads Technology Co., Ltd. made a grand debut on the Shanghai Stock Exchange STAR market on December 5, 2025, with its share price opening at 650 yuan, more than five times higher than its IPO price of 114.28 yuan per share. This represented an incredible 400% increase on the very first day of being listed, one of the largest increases for any company with such a large IPO in China.
Moore Threads Technology Co., Ltd. raised nearly 8 billion yuan (approximately $1.1 billion) from this offering, which shows enormous interest from investors and high levels of investor confidence notwithstanding uncertainty surrounding technology stocks across the globe at this time.
Why investors piled in
As a result, the shares of Moore Threads have become increasingly popular among both institutional and retail investors because it has been marketed as a domestic alternative to Western-based GPU manufacturers. This has been even more relevant in light of recent US export restrictions related to advanced chips.
Global demand for AI and Data Center technology continues to grow rapidly, and therefore, any viable competitor in the GPU Industry will create heightened interest from both institutional and retail investors.
The IPO was valued at an extremely high P/S (Price/ Sales per share) ratio of approximately 123 times projected revenues for 2024; however, that has not curbed interest and demand for the company's stock. In addition, Analysts attribute a portion of the increasing demand to the broader strategy being promoted by the Government of China to promote local semiconductor manufacturing and decrease dependency on foreign sources of semiconductors.
A start-up with big ambitions
Zhang Jianzhong, who previously worked for Nvidia China, established Moore Threads in 2020 and focused on developing high-performance GPU technology dedicated solely to AI workloads. Moore Threads is still working toward being profitable, but its technology and position within the Chinese tech ecosystem have already attracted significant attention.
Additionally, Moore Threads' IPO coincided with geopolitical developments that have altered the global chip market. The tightening of export restrictions on advanced semiconductor technologies by Washington has increased the strategic importance of Chinese companies like Moore Threads to international investors. There is now a surge of activity among investors seeking to back domestic companies like Moore Threads to fill the voids created by limited access to foreign firms' products.
What this means for the future
Moore Threads' exorbitant initial public offering (IPO) does not determine if it will stay on top of the semiconductor industry for an extended time; rather, it represents an aspect of the momentum associated with that initial offering. A strong initial offering not only demonstrates trust in future growth opportunities in China, but it also indicates the degree to which development within the AI hardware marketplace will completely dominate the global landscape of technology.
The success of Moore Threads could lend momentum to its continued ability to develop and create innovative products while also receiving encouragement from investors and regulators, in order for local chip makers to play a significant role in both local and international AI markets.
However, although Moore Threads was able to have a successful initial public offering, it will still face the same technological competition as all the other established global businesses, as well as incur high research and development (R&D) expenses when making efforts to establish its products against reputable names in the industry.
Wrapping up
Moore Threads' strong start on the Shanghai Stock Exchange (SSE) is an important step in China's technology development. The first-day stock price increase of 400% indicates that investors are enthusiastic about Moore Threads and have more faith in the ability of Chinese companies to create a competitive, domestic market for AI chips. In addition, as global demand for computing power increases and supply chain changes occur, Moore Threads is well-positioned to take advantage of the rapidly changing semiconductor market.
Despite facing challenges such as competition and the need to increase commercial usage, Moore Threads' entry into the market demonstrates a strong commitment from both investors and the government to the future of AI technology in China. The next few years will be critical to see how well the company executes and innovates; however, Moore Threads has already made history by entering the market as an AI chip manufacturer.
