Moore Threads' stock soared by 400%, signaling strong investor confidence despite U.S. sanctions and fierce competition with Nvidia.
Moore Threads made an impressive debut on the Shanghai stock exchange, with shares soaring by more than 400% after its $1.1 billion IPO. It’s popularly known as China's Nvidia. The company raised nearly 8 billion yuan ($1.13 billion) during its IPO, pricing its shares at 114.28 yuan each. The IPO’s success has made Moore Threads the second-most sought-after listing in China since 2022, only behind Huadian New Energy Group Co.’s $2.7 billion IPO earlier this year.
However, Moore Threads is still not profitable and has been placed under U.S. sanctions since 2023, which has limited its access to advanced chip manufacturing technologies. However, the firm’s listing is part of China’s broader effort to build domestic AI and GPU capabilities amid rising trade tensions and the ongoing tech war with the United States.
Aiming for AI Supremacy
Moore Threads was founded in 2020 by former Nvidia executive Zhang Jianzhong. It initially focused on gaming and visual rendering GPUs but quickly pivoted to AI accelerators, catering to the growing demand for chips that power large language models and other AI-driven applications.
This reflects a broader trend in China, where a surge in domestic AI chip development is seen as vital for the nation’s technological independence. Moore Threads' net loss for the first three quarters of the year amounted to 724 million yuan, although this was a 19% improvement from the previous year. Meanwhile, revenue surged by 182% to 780 million yuan, reflecting strong growth despite the setbacks.
The Impact of U.S. Sanctions
In 2023, the U.S. Commerce Department added Moore Threads to its entity list, limiting its access to critical manufacturing equipment. This step led to the reorganization and reduction of the workforce.
However, despite these, Moore Threads has turned into a symbol of Chinese self-reliance in technology. The nation has put more emphasis on the need to eliminate dependence on the American giants, such as Nvidia, which has also encountered its own challenges in China owing to the U.S. export controls. In fact, Moore Threads has benefited from Nvidia’s forced exit from the Chinese market, positioning itself as a key alternative for AI and GPU solutions.
What’s Next for Moore Threads?
The strong debut comes as China doubles down on its ambition to be a leader in AI and semiconductor technology. The firm plans to invest the IPO proceeds in next-generation AI and GPU projects, with a focus on self-developed AI training and inference chips.
Investors are closely watching other potential listings in China’s semiconductor space, with companies like MetaX Integrated Circuits and Yangtze Memory Technologies also eyeing IPOs. If Moore Threads' success is any indication, China’s tech self-sufficiency is gaining momentum, even amid the geopolitical pressures that continue to shape the global semiconductor market.
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