A spectacular stock market launch catapults Moore Threads into the spotlight as “China’s NVIDIA”. Whether the hype will last remains to be seen.
• Moore Threads gained 425 percent in its IPO
• Company is not yet profitable
• Whether Moore Threads will really become serious competition for NVIDIA remains to be seen
The stock market world is currently looking excitedly at the Chinese chip developer Moore Threads. The company, which is already traded in analyst circles as “China’s NVIDIA”, got off to a sensational start on Friday at the Initial Public Offering (IPO) on the Shanghai Stock Exchange. Is the AI industry leader NVIDIA now threatened with competition?
The shares rose more than 400 percent on their debut day
The price for the initial issue was 114.28 yuan, Moore Threads shares marked their initial price in trading on Friday at 556.00 yuan, and they ended the first day of trading at 600.50 yuan. This means that investors from the first hour have an increase of 425 percent in their portfolios after just one trading day.
The price jump signals unbroken investor appetite for Chinese technology stocks and multiplied the AI specialist’s market capitalization in one fell swoop.
As part of the IPO, Moore Threads raised around eight billion yuan (approx. 1.13 billion dollars), making it the second largest IPO on mainland China in 2025. The capital will primarily flow into accelerating the research and development of independently developed graphics processors (GPUs) for AI applications and cloud computing.
Geopolitics drives the imagination
The euphoria surrounding Moore Threads is not only due to the business model, but above all to the geopolitical situation. In view of the tightened export restrictions by the USA, which are intended to cut off China’s access to the most modern AI chips from market leader NVIDIA, Moore Threads is becoming the spearhead of China’s efforts for technological autonomy. Investors are betting that the government-sponsored need to create a domestic replacement for high-performance chips will give the company a huge, protected market share.
The origin of the founder creates an additional basis of trust. Moore Threads was launched in 2020 by James Zhang, a former vice president and general manager of NVIDIA’s China division. His insider knowledge and experience in the global GPU market are considered a decisive factor for the start-up’s credibility.
High profits, high risk
Despite the spectacular start to the stock market, investors should not ignore the risks. The immense price jump is based almost exclusively on hope for the future and political tailwind.
A closer look at the fundamental data shows that Moore Threads is currently still in the red. Although sales increased significantly in the first nine months of the year, this was offset by a high net loss. The valuation is well above the average for the broader market and illustrates how high expectations are for future growth in China’s AI sector.
Moore Threads as a threat to NVIDIA shares?
At this time, Moore Threads is unlikely to pose an immediate threat to NVIDIA’s global market leadership, particularly in the high-performance artificial intelligence (AI) segment.
However, its strength lies in the political and domestic tailwinds of China, which has effectively created a vacuum market for domestic chip developers through US export restrictions. The company is receiving massive funding to end its technological dependence on the USA. In the long term, Moore Threads could accelerate scaling and research development through secured demand in the huge Chinese market and government support, thereby significantly reducing NVIDIA’s market share in China. However, whether it can pose serious competition in the global market depends on whether the company is able to close the huge performance gap with NVIDIA’s top chips and build a viable international ecosystem.
Trade only possible in China
For Western small investors, it is currently almost impossible to get into the new shooting star of the Chinese tech market, as the share is only listed on the Shanghai Stock Exchange and there is no American Depositary Receipt (ADR) for trading on US or European stock exchanges.
Editorial team finanzen.net
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