Shanghai witnessed financial fireworks as Moore Threads Technology Co. leapt 425% on its trading debut, turning 8 billion yuan into the hottest ticket since China’s 2019 IPO reforms.
Investors didn’t just line up—they practically camped out, oversubscribing the retail portion 2,750 times, proving that when it comes to chips, patience is fried but enthusiasm is sizzling.
The surge left investors giddy, regulators cautious. Meanwhile, ordinary citizens are still trying to figure out how a company losing 724 million yuan can suddenly be worth 282 billion yuan—proof that stock markets run less on math and more on caffeine.
Moore Threads, founded in 2020 by former Nvidia executive Zhang Jianzhong, has gone from gaming graphics to AI accelerators faster than you can say “large language model.” Investors clearly believe in the pivot, or at least believe in the thrill of buying something that sounds futuristic.
The IPO raised $1.13 billion, but the real headline was the 425% surge, which made SMIC’s 202% debut in 2020 look like a warm-up act. Retail investors oversubscribed the offering 2,750 times, which means if you wanted shares, you had better have bribed your cousin’s cousin’s cousin.
The company’s market cap closed at 282.3 billion yuan, about half of Cambricon’s, though still impressive for a firm that recently admitted to losing hundreds of millions. Apparently, investors now treat “net loss” as a motivational slogan rather than a financial metric.
Regulators had eased listing rules earlier this year, allowing unprofitable firms to join the Nasdaq-style Star Board. Translation: “If you’re losing money but have a cool AI logo, welcome aboard.”
Analysts warned that such surges often signal froth. Froth, in this case, is not the foam on your cappuccino but the bubbly excitement that makes investors forget gravity exists. Shao Qifeng of Ying An Asset Management diplomatically noted that history remembers these IPOs, though not always fondly.
Moore Threads’ rise comes amid China’s push for tech self-sufficiency, especially after Nvidia’s forced exit. With Cambricon, Huawei, and Baidu all in the race, the competition resembles a marathon where everyone is sprinting and occasionally tripping over trade restrictions.
The frenzy even caused collateral damage. Shenzhen H&T Intelligent Control Co., a minor stakeholder, tumbled 10% as investors rotated funds. Nothing says “congratulations” like watching your own stock nosedive while your partner celebrates.
Proceeds will fund next-generation AI and graphics chips, plus working capital—because even chipmakers need to pay the electricity bill. The IPO was the second-largest of the year, trailing only Huadian New Energy’s $2.7 billion listing.
Financial filings revealed Moore Threads’ revenue surged 182% to 780 million yuan, while losses narrowed by 19%. Still, its price-to-sales ratio stood at 123 times, higher than peers. The company even asked its sponsor to remind investors of risks, which is like a rollercoaster operator yelling “this ride might break” while passengers cheer louder.
The firm faced setbacks in 2023 when the US Commerce Department barred access to key technologies, leading to job cuts. Yet optimism grew as Beijing promoted chips as national treasures. The Star 50 Index jumped 34% this year, with Cambricon doubling, proving that in China, chips are hotter than dumplings.
Other firms are lining up to follow. MetaX Integrated Circuits opened subscriptions, while Yangtze Memory and ChangXin Memory weigh IPOs that could hit 300 billion yuan valuations. Investors, apparently, have decided that memory chips are more exciting than actual memories.
Fund manager Chen Zunde noted that muted sentiment made room for big debuts. Translation: “Everyone was bored, so they bought chips.” Still, some worry Moore Threads’ IPO could siphon funds from peers, leaving them with crumbs instead of capital.
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