Moore Threads IPO Delivers Spectacular 468% First-Day Surge, Transforming China’s GPU Landscape
Chinese GPU startup Moore Threads debuted on the STAR Market on December 5, 2025, with its opening price soaring to CNY650 (US$91.94) per share—a staggering 468.78% increase, creating one of the most remarkable public market debuts in recent memory. This extraordinary Moore Threads IPO performance signals a pivotal moment for Chinese semiconductor independence and demonstrates unprecedented investor appetite for domestic AI chip alternatives.
The Beijing-based company, often dubbed “China’s Nvidia,” achieved remarkable subscription numbers that underscore growing confidence in homegrown technology solutions. Strong demand was clear during subscription, where the adjusted online allotment rate stood at 0.036% and the subscription multiple hit 2,751, making it one of the most oversubscribed offerings in Chinese market history.
Massive Market Valuation and Record-Breaking Performance
Moore Threads IPO propelled the company’s market capitalization to unprecedented heights, with its market capitalization beyond CNY300 billion at one point. The stock ultimately closed 425 per cent higher at 600.50 yuan, establishing Moore Threads as a major force in the Chinese GPU startup ecosystem.
The company issued 70 million shares at CNY114.28 each, equal to 14.89% of total equity, and expects net proceeds of CNY7.576 billion (approx. US$1.07 billion) to accelerate AI chip development. This makes it the STAR Market’s largest IPO in 2025, highlighting the significant capital flowing into Chinese semiconductor development.
The listing’s impact extends beyond individual performance metrics. Its debut doubled that of Semiconductor Manufacturing International Corp.’s 202% surge in 2020 to secure the top spot among IPOs larger than $1 billion, establishing new benchmarks for technology company debuts in China.
Strategic Importance for China’s Tech Independence
The Moore Threads stock price performance reflects broader geopolitical dynamics shaping the semiconductor industry. The company was added to the US Department of Commerce Entity List in 2023 and remains unprofitable, yet investors demonstrated overwhelming confidence in its long-term potential despite current losses.
This surge occurs against the backdrop of intensifying trade tensions. Washington has maintained varying export restrictions on Nvidia for years, preventing it from selling its most advanced AI chips to China. More recently, Beijing has also stepped in to block imports of Nvidia’s chips as it tries to encourage domestic alternatives like Moore Threads.
The Chinese GPU startup landscape is rapidly evolving, with Moore Threads grouped with MetaX, Enflame Technology, and Biren Technology as one of China’s “Four GPU Dragons”, with the other three also preparing for listings. This coordinated approach suggests systematic government support for semiconductor self-sufficiency initiatives.
Financial Performance and Growth Trajectory
Despite impressive market reception, Moore Threads faces significant financial challenges typical of early-stage technology companies. First-half 2025 revenue reached CNY700 million, exceeding its 2024 full-year level, but losses continued. Moore Threads expects to reach profitability in 2027.
Moore Threads generated more than USD 56.5 million in revenue in 2024, with a three-year compound annual growth rate exceeding 200%. Revenue for the first half of 2025 reached around USD 100 million, demonstrating accelerating business momentum despite current unprofitability.
The company’s aggressive growth trajectory aligns with broader market expansion. The China Semiconductor Device Market is expected to reach USD 217.55 billion in 2025 and grow at a CAGR of 7.39% to reach USD 310.78 billion by 2030, providing substantial addressable market opportunities for Moore Threads and competitors.
Institutional Support and Market Dynamics
The Moore Threads IPO attracted significant institutional participation, highlighting sophisticated investor confidence in China’s semiconductor strategy. Bloomberg and Sina reported participation from quant funds such as Ubiquant Investment, High-Flyer, and Lingjun Investment, indicating professional money managers view the company as strategically valuable.
Liang Wenfeng, the founder of the large language model firm DeepSeek and the quantitative hedge fund HighFlyer, was listed as the top institutional investor, having invested 7 million yuan in Moore before its IPO. This endorsement from leading AI industry figures provides additional credibility for Moore Threads’ technology roadmap.
The rapid approval process demonstrates regulatory prioritization. Dubbed “China’s Nvidia”, Moore had a quick path to the capital market, getting the green light from the China Securities Regulatory Commission in October, a mere four months after its application, compared with the average processing time of about 470 days for last year’s applicants.
Technology Focus and Development Plans
Moore Threads plans strategic deployment of IPO proceeds to strengthen its competitive position. The company said in its listing that the IPO proceeds are needed to accelerate several core research and development initiatives, including new-generation self-developed AI training and inference GPU chips.
The company’s technological foundation stems from industry expertise. Founded in 2020 by Zhang Jianzhong, former Global Vice President of NVIDIA, the company brings together a core team of talent from leading universities and NVIDIA, with a focus on developing full-function GPUs. This leadership pedigree provides credibility for execution capabilities.
Moore Threads’ fully functional GPU is based on its self-developed MUSA architecture and can simultaneously support AI computing acceleration, graphics rendering, physical simulation, and ultra-high-definition video processing for multiple scenarios, demonstrating comprehensive technical capabilities beyond narrow AI applications.
Market Implications and Industry Impact
The STAR Market IPO performance reflects changing investor sentiment toward Chinese technology companies. The trading debut demonstrates strong market confidence in homegrown chip technology, even when companies haven’t achieved profitability. Moore Threads operates in an industry where geopolitical tensions fuel domestic investment, creating opportunities for firms positioned to replace foreign suppliers.
Moore Threads’ listing comes as optimism over China’s drive for tech self-sufficiency intensifies, fueled by trade tensions and fears of US technology curbs. Earlier this year, regulators eased listing rules for unprofitable firms on the Nasdaq-style Star Board to bolster homegrown startups, creating more favorable conditions for technology company public offerings.
The broader semiconductor landscape shows remarkable growth potential. Yole Group forecasts a US$743 billion market in 2025, a 14% increase, with market structure remaining consistent. Mainland China continues to act as the world’s consumer electronics hub, with about one-third of all semiconductor devices used in locally assembled electronics systems.
Competitive Landscape and Future Outlook
Moore Threads operates within an increasingly competitive domestic ecosystem. Newer players like Enflame Technology and Biren Technology have also entered the space, aiming to capture a share of the billions in GPU demand no longer served by Nvidia, creating healthy competition that should drive innovation and market development.
The AI chip company stock performance indicates investor optimism about sector consolidation opportunities. MetaX Integrated Circuits Shanghai Co., a closely watched peer, opened subscriptions Friday. Meanwhile, memory chipmakers Yangtze Memory Technologies Co. and ChangXin Memory Technologies Inc. are weighing onshore IPOs that could value each at up to 300 billion yuan.
China’s semiconductor self-sufficiency goals provide long-term growth tailwinds. China’s aim to boost semiconductor self-sufficiency, which is expected to reach 50% by 2025, creates substantial domestic market protection and investment incentives for companies like Moore Threads.
Investment Considerations and Risk Factors
Despite spectacular debut performance, Moore Threads faces significant operational challenges. During the first three quarters of the year, Moore Threads’ net loss was 724 million yuan, according to a Sinolink Securities note, narrowing by 19% from the year ago period, indicating improving but still negative profitability metrics.
Valuation concerns persist despite strong market reception. The issue price of RMB 114.28 per share corresponds to a diluted static price-to-sales ratio for 2024 of 122.51 times for the issuer, which is higher than the average 2024 static price-to-sales ratio of comparable companies in the same industry, suggesting premium pricing relative to industry peers.
The company operates under ongoing geopolitical constraints. The 2023 U.S. sanctions targeted Moore Threads specifically, blocking its access to cutting-edge chip manufacturing processes and foundries, creating potential technology development limitations that could impact long-term competitiveness.
Conclusion: Transformative Moment for Chinese Semiconductor Industry
The Moore Threads IPO represents more than a successful public offering—it symbolizes China’s determination to achieve technological independence in critical semiconductor sectors. The 468% first-day surge demonstrates unprecedented investor confidence in domestic GPU capabilities, even amid ongoing geopolitical tensions and company profitability challenges.
This remarkable debut provides validation for China’s substantial semiconductor investment strategy and signals growing market maturity for homegrown technology companies. As Moore Threads continues developing its MUSA architecture and expanding market presence, the company’s performance will serve as a crucial benchmark for China’s broader semiconductor independence goals.
The success creates positive momentum for other Chinese GPU startup listings and reinforces Beijing’s commitment to building a comprehensive domestic semiconductor ecosystem capable of competing with established international players.
Frequently Asked Questions
What caused Moore Threads IPO to surge 468% on its first trading day?
The surge was driven by massive investor demand for China’s first domestic GPU company, limited share supply with only 70 million shares issued, and strong investor confidence in China’s semiconductor independence strategy amid U.S. trade restrictions.
How much money did Moore Threads raise in its IPO?
Moore Threads raised approximately CNY7.576 billion (US$1.07 billion) through its IPO, making it the largest STAR Market IPO in 2025 and the year’s second-largest onshore Chinese IPO.
Is Moore Threads profitable currently?
No, Moore Threads remains unprofitable with a net loss of 724 million yuan in the first three quarters of 2025. However, the company expects to reach profitability by 2027 while revenue continues growing rapidly.
What makes Moore Threads different from Nvidia?
Moore Threads uses its self-developed MUSA architecture and focuses on serving the Chinese market where Nvidia faces export restrictions. The company offers integrated solutions for AI, graphics, and video processing specifically designed for domestic customers.
What are the main risks for Moore Threads investors?
Key risks include continued unprofitability, high valuation metrics (122.51 times 2024 sales), U.S. sanctions limiting access to advanced manufacturing, intense competition from other Chinese GPU companies, and dependence on China’s semiconductor policy support.
How does Moore Threads IPO compare to other recent Chinese tech IPOs?
Moore Threads’ 468% debut surge doubled the previous record held by SMIC’s 202% increase in 2020, making it the biggest first-day pop for any IPO over $1 billion since China’s 2019 market reforms.
What will Moore Threads do with the IPO proceeds?
The company plans to use proceeds for developing next-generation AI training and inference chips, advancing graphics processor technology, building AI SoC chips, and creating a comprehensive computing platform covering cloud and edge applications.
