MetaX Shares Skyrocket 700% in Shanghai Debut as China’s AI Chip Boom Intensifies
MetaX Integrated Circuits surged 700% on its market debut in Shanghai, underscoring strong investor enthusiasm for Chinese artificial intelligence (AI) chipmakers as Beijing accelerates efforts to reduce reliance on U.S. semiconductor giants such as Nvidia and AMD.
A Record-Breaking IPO Amid China’s Tech Drive
Founded by former AMD executives, MetaX (688802.SS) raised roughly $600 million in its initial public offering last week, just days after rival Moore Threads debuted with a 400% share jump. Retail investors oversubscribed MetaX’s IPO by more than 4,000 times, making it one of China’s most sought-after listings this year.
Shares opened at 700 yuan compared with the IPO price of 104.66 yuan, climbing as high as 895 yuan before closing at 829.9 yuan — up nearly 693%. The surge propelled the company’s market value to over 300 billion yuan ($42.6 billion). “It’s another IPO tale in China that turns a crow into a phoenix,” said Yang Tingwu, fund manager at Tongheng Investment, though he warned that the current valuation could represent the stock’s peak for several years.
China’s Push for Semiconductor Self-Sufficiency
China’s AI chipmakers are capitalising on national policies promoting domestic innovation to counter U.S. technology curbs. “AI and semiconductors are key areas of competition in the Sino-U.S. tech rivalry,” Guotai Haitong Securities said in a report. “Against the backdrop of geopolitical tension, AI chipmaking has huge growth potential.”
Research firm Frost & Sullivan forecasts that China’s AI chip sales will rise from $54 billion in 2026 to $189 billion by 2029. MetaX currently controls about 1% of China’s AI chip market and expects sales to more than double this year as government demand for locally developed technology intensifies.
The Rise of a Home-Grown GPU Maker
MetaX, led by founder and former AMD Shanghai executive Chen Weiliang, develops graphics processing units (GPUs) tailored for AI workloads. Chen, 49, said his mission is to “contribute to China’s rejuvenation and national prosperity.” Analysts believe the company’s strong engineering roots make it a promising contender in the domestic GPU space.
“The company is a leading GPU maker in China thanks to its AMD gene,” said Li Hui, analyst at Huajin Securities. “It stands to benefit from the country’s continuous push to replace foreign suppliers with indigenous technology.”
A Fiercely Competitive Market
MetaX’s IPO priced the loss-making firm at 50 times its projected 2024 sales, compared with valuation multiples of 34 for Nvidia and 14 for AMD. Despite its soaring debut, analysts warn of intense competition. MetaX faces domestic rivals such as Moore Threads, Hygon, and Biren, while also contending with tech giants Huawei and Alibaba in the specialised ASIC chip sector.
Yuan Yuwei of Trinity Synergy Investments said Chinese policymakers are fast-tracking IPOs for local AI chipmakers to secure talent and capital. “Domestic players lag U.S. rivals, but if they can raise tens of billions to invest in innovation, breakthroughs cannot be ruled out,” he said.
Risks and Market Outlook
MetaX’s prospectus acknowledged several challenges, including potential supply chain disruptions from U.S. export restrictions and a technology gap with Nvidia and AMD. Despite these risks, optimism remains high. IPO fundraising in China rose 23% in 2025 to exceed 160 billion yuan, with nearly a quarter of proceeds flowing into the technology, media, and telecom sectors.
Still, analysts caution that the current valuations of China’s AI chipmakers may reflect speculative fervour rather than sustainable growth. “MetaX’s technology lags Moore Threads and faces stiff competition from Huawei and Alibaba,” Yuan said. “There’s definitely froth in its share price under current conditions.”
with inputs from Reuters
