Moore Threads’ market listing has quickly become a marker of China’s determination to expand its domestic AI chip ecosystem.
The Beijing-based GPU maker surged more than 400% on its first day of trading in Shanghai after raising $1.1 billion.
Its shares are now priced at 584.98 yuan, far above the offer price of 114.28 yuan.
The scale of the jump indicates how investors are aligning with China’s broader effort to foster homegrown chip designers, amid ongoing global supply chain restrictions that continue to shape the industry.
Funding plans
The company stated in its listing that the funds raised will primarily support the research and development of internally designed next-generation AI training and inference GPU chips.
These projects form a central part of how China aims to build deeper capabilities across its own semiconductor supply chain.
Moore Threads will also direct some funds toward working capital.
The IPO was led by CITIC Securities, with BOC International Securities, China Merchants Securities, and GF Securities acting as joint book runners.
Sanctions backdrop
Another factor shaping the company’s momentum is the rapid expansion of AI demand inside China, where data centres, autonomous vehicles, robotics firms, and cloud providers are increasing their need for high-performance GPUs.
Much of this demand cannot be met by foreign suppliers due to long-running restrictions, creating a wider market opening for domestic chipmakers.
Investors are also responding to Beijing’s broader industrial policy, which includes steady approval of semiconductor listings and targeted support for advanced computing projects.
Against this backdrop, Moore Threads’ debut serves as both a market signal and a strategic milestone in China’s evolving AI hardware landscape.
The successful listing comes despite Moore Threads being placed under US sanctions in 2023.
These restrictions have limited the company’s access to advanced manufacturing processes and overseas foundries, adding pressure as it competes with global players.
Nvidia has long been unable to sell its most advanced AI chips into the Chinese market due to export controls.
More recently, Beijing has also blocked imports of Nvidia hardware, steering demand toward domestic alternatives.
This policy landscape has created new space for companies like Moore Threads to scale.
Rising competition
Moore Threads is one of several Chinese companies working to build AI processors as part of a broader strategy to reduce reliance on foreign technology.
Large firms such as Huawei are expanding their semiconductor focus, while specialised players like Cambricon have seen their shares rise more than 100% this year in Shanghai.
Newer entrants, including Enflame Technology and Biren Technology, are also moving to capture GPU demand left open by Nvidia’s restricted access.
Chinese regulators have been approving more semiconductor IPOs as the country pushes for greater AI independence.
Moore Threads’ performance adds fresh momentum to that drive and signals growing investor confidence in domestic chip development.
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