Chinese Chip Manufacturer Moore Threads Increased by 502 Percent in IPO

Moore Threads Technology Co.: Historical IPO

China's leading chip manufacturer Moore Threads Technology Co. raised 8 billion yuan (approximately 1.13 billion dollars) in the second largest IPO of the year. On its first trading day in Shanghai, the stocks recorded an extraordinary increase of %502.

The Path to Becoming China's Nvidia

Moore Threads is referred to as China's Nvidia, and with this IPO, it is on track to achieve the largest opening day surge since surpassing 1 billion dollars in 2019. According to Bloomberg data, if this increase continues, a historical record will be set.

Investor Optimism

The IPO took place amidst trade tensions and concerns regarding U.S. technology restrictions, but it was also driven by increasing optimism about China's self-sufficiency efforts in the tech sector. This surge is seen as an indicator of strong investor appetite in specific sectors like artificial intelligence.

Expert Opinion

Shao Qifeng, chief investment officer of Ying An Asset Management Co., stated, "Such a scale of increase can be expected due to strong demand. This IPO will be a pioneering development that leaves a mark in history. However, unforgettable IPOs can often indicate bubble formation; thus, they do not always carry positive signs for the related sectors."

Company History

Moore Threads was founded in 2020 by Zhang Jianzhong. In October 2023, the company experienced layoffs and restructurings after being added to the list of entities by the U.S. Department of Commerce, which obstructed access to core technologies.