Moore Threads Jumps 400%—China’s New AI Hope
Moore Threads, whose IPO was priced at 123 times its 2024 sales, expects revenue to grow up to 242% in 2025.
Quick overview
- Moore Threads Technology Co., known as 'China's Nvidia,' saw its stock surge 400% during its Shanghai debut amid U.S.-China tensions.
- The company specializes in GPUs for AI computing and is expected to play a significant role in China's push for domestic chip manufacturing.
- As the U.S. tightens chip export restrictions, Beijing is accelerating semiconductor IPO approvals to enhance technological self-sufficiency.
- Despite its rapid growth, concerns are rising about a potential AI-driven financial bubble, with Moore Threads' IPO priced at 123 times its projected 2024 sales.
Amid an ongoing “cold war” between the U.S. and China, the rapid rise of the tech company has caught experts’ attention.
Moore Threads Technology Co., dubbed by analysts as “China’s Nvidia,” surged 400% in its Shanghai debut on Friday. The jump reflects growing bets that the U.S.-blacklisted startup will benefit from Beijing’s push to boost domestic chip manufacturing.
Moore Threads builds graphics processing units (GPUs) for AI computing, and according to a report from Sinolink Securities, it could become a key force in accelerating China’s efforts to replace foreign chips with local technology.
As Washington tightens restrictions on advanced chip exports to China—aimed at slowing its AI progress—Beijing has fast-tracked semiconductor IPO approvals to strengthen technological self-sufficiency.
Moore Threads Shares Skyrocket
The stock opened at 650 yuan (USD 91.91), more than five times its IPO price, and later hovered around 600 yuan.
“The AI era is driving a rapid expansion in GPU demand,” said Fan Zhiyuan, an analyst at Sinolink Securities, who had set a target price of 182.25 yuan for Moore Threads. Last week, the company raised nearly 8 billion yuan (USD 1.13 billion) by selling shares at 114.28 yuan each.
However, the explosive growth also raises concerns amid rising speculation about a potential AI-driven financial bubble.
Moore Threads, whose IPO was priced at 123 times its 2024 sales, expects revenue to grow up to 242% in 2025, reaching 1.5 billion yuan, joining a growing group of Chinese startups aiming to fill the gap left by Nvidia.
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