Is Chinas Moore Threads the Next Big Shock to the Global AI Chip Market?
Source: Kapitales Research
Highlights:
Moore Threads’ IPO attracted an unprecedented $4.54 trillion in bids, surpassing Nvidia’s market value and marking one of the most oversubscribed offerings in global markets.
Retail subscriptions exceeded 4,127 times, resulting in a minuscule 0.036% allocation, despite the IPO valuing the company at $7.5 billion.
Backed by Tencent, ByteDance, and Sequoia China, the GPU startup continues rapid growth despite US tech restrictions and remains a key player in China’s accelerating AI chip race.
A Record-Smashing IPO Frenzy
A Chinese AI chipmaker, Moore Threads Intelligent Technology Co., has taken global markets by surprise after its initial public offering attracted a staggering $4.54 trillion in total bids. At the time of writing, the magnitude of demand has exceeded even the market value of Nvidia, which sits near $4.3 trillion. The company launched a $1.1 billion IPO, but demand surged more than 4,000 times the available shares, with retail subscriptions alone reaching 4,127 times the allotment.
Retail Investors Shut Out Amid Overwhelming Demand
Due to the extraordinary oversubscription, reports indicate the final retail allocation is a razor-thin 0.036%, leaving most applicants without any shares. The overwhelming appetite highlights both China’s accelerating AI race and investor enthusiasm for domestic semiconductor alternatives amid US tech restrictions.
A Young Chipmaker With Big Ambitions
Founded in 2020 by James Zhang Jianzhong — who previously led Nvidia’s operations in China — Moore Threads develops its own line of Graphics Processing Units (GPUs), positioning itself as a domestic rival in a market long dominated by Nvidia. In its IPO, the company set an offer price of 114.28 yuan per share, giving it an estimated valuation of about $7.5 billion and securing roughly 8 billion yuan in new funding.
Despite its rapid rise, Moore Threads is not yet profitable. In the first six months of 2025, the company recorded a net loss of 271 million yuan, while generating revenues of 701.8 million yuan over the same period. Still, the company has already delivered four GPU architectures in four years, even while being on the US “entity list” since 2022.
Powered by China’s AI Boom
Moore Threads’ backers include Tencent, ByteDance, GGV Capital, and Sequoia China—a lineup that reflects China’s strategic push toward semiconductor self-reliance. The hype mirrors broader AI enthusiasm, seen recently in the sharp rally of Cambricon Technologies.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Is Chinas Moore Threads the Next Big Shock to the Global AI Chip Market?
Highlights:
A Record-Smashing IPO Frenzy
A Chinese AI chipmaker, Moore Threads Intelligent Technology Co., has taken global markets by surprise after its initial public offering attracted a staggering $4.54 trillion in total bids. At the time of writing, the magnitude of demand has exceeded even the market value of Nvidia, which sits near $4.3 trillion. The company launched a $1.1 billion IPO, but demand surged more than 4,000 times the available shares, with retail subscriptions alone reaching 4,127 times the allotment.
Retail Investors Shut Out Amid Overwhelming Demand
Due to the extraordinary oversubscription, reports indicate the final retail allocation is a razor-thin 0.036%, leaving most applicants without any shares. The overwhelming appetite highlights both China’s accelerating AI race and investor enthusiasm for domestic semiconductor alternatives amid US tech restrictions.
A Young Chipmaker With Big Ambitions
Founded in 2020 by James Zhang Jianzhong — who previously led Nvidia’s operations in China — Moore Threads develops its own line of Graphics Processing Units (GPUs), positioning itself as a domestic rival in a market long dominated by Nvidia. In its IPO, the company set an offer price of 114.28 yuan per share, giving it an estimated valuation of about $7.5 billion and securing roughly 8 billion yuan in new funding.
Despite its rapid rise, Moore Threads is not yet profitable. In the first six months of 2025, the company recorded a net loss of 271 million yuan, while generating revenues of 701.8 million yuan over the same period. Still, the company has already delivered four GPU architectures in four years, even while being on the US “entity list” since 2022.
Powered by China’s AI Boom
Moore Threads’ backers include Tencent, ByteDance, GGV Capital, and Sequoia China—a lineup that reflects China’s strategic push toward semiconductor self-reliance. The hype mirrors broader AI enthusiasm, seen recently in the sharp rally of Cambricon Technologies.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au