Moore Threads Skyrockets on Debut

Moore Threads, a Chinese GPU designer, saw its shares surge nearly fivefold in its Shanghai market debut, marking the second-largest IPO on the mainland this year. The company's stock price jumped significantly from its initial offering price. This impressive performance reflects investor confidence in China's push for technological self-sufficiency, particularly in the semiconductor industry.

Moore Threads, founded by a former Nvidia executive, develops GPUs for AI computing and related applications. Despite being added to a US entity list that restricts access to key technologies, the company has garnered substantial investor interest amid Beijing's drive to bolster domestic chip manufacturing. Proceeds from the IPO, which raised approximately $1.07 billion, will be used to fund AI and graphics chip projects.

China is accelerating its efforts to achieve AI chip independence, with some municipalities setting ambitious targets for domestic chip usage in data centres. Companies like Huawei and Alibaba are also investing heavily in AI chip development and exploring the use of domestically designed semiconductors. This trend signifies a broader move towards creating a self-reliant semiconductor ecosystem within China.