China GPU Maker Moore Threads Soars on Stock Debut Amid Artificial Intelligence Frenzy

Beijing-based chipmaker Moore Threads has seen its market value surge more than 500 per cent following its initial listing on the Shanghai Stock Exchange, offering a striking example of heightened investor interest in artificial intelligence companies. The firm, often compared to Nvidia, raised 1.1 billion US dollars on debut, with its valuation quickly rising to more than 40 billion US dollars.

Moore Threads develops graphics processing units, or GPUs, the type of chips that have been central to Nvidia’s ascension to a four and a half trillion dollar valuation. Major technology firms in Silicon Valley have invested heavily in Nvidia’s processors to drive the growth of advanced artificial intelligence data centres, accelerating a global race to create powerful AI systems. Such demand has contributed to soaring valuations and persistent concerns about an AI investment bubble.

China, limited by restrictions that prevent access to the latest generation of US-made chips, has focused on domestic alternatives. A number of Chinese technology firms, including Moore Threads, have emerged to fill the gap by designing their own GPU architecture. Founded five years ago by Zhang Jianzhong, a former Nvidia executive, Moore Threads employs technology compatible with Nvidia’s software environment, aiming to become a recognised global player in the GPU sector.

The company’s rapid ascent has not come without challenge. Moore Threads was added to the US Entity List in 2023, a blacklist for companies carried on grounds of perceived threats to national security. Leading investors in the business include Bytedance, the owner of TikTok, and Lian Wenfeng, founder of the Chinese AI company DeepSeek, which is fast becoming a rival to OpenAI.

Despite its high profile and ambitious growth forecasts, Moore Threads operates at a significant loss, and its revenue levels remain far below those of Nvidia. In the first six months of this year, Moore Threads reported revenues of around 100 million US dollars. Its share price rally has coincided with broader volatility in global equity markets, with Nvidia’s share price currently about ten per cent below its all time high from October.