Chinese chipmaker MetaX shares soar nearly 700% in Shanghai debut

Chinese chipmaker MetaX Integrated Circuits witnessed a remarkable 700% surge in its market debut in Shanghai, raising nearly $600 million in its initial public offering.

After being priced at 104.66 yuan in the IPO, the shares closed at 829 yuan on debut, marking a staggering 692% jump in value.

Similar to Moore Threads, MetaX specializes in developing graphics processing units for artificial intelligence applications, tapping into the rapidly growing sector driven by the increasing adoption of AI services.

As part of a larger trend, MetaX joins a group of local chipmakers focusing on AI processors, aligning with Beijing’s efforts to reduce reliance on U.S. chips following tech restrictions imposed by Washington.

The U.S. has imposed export curbs on Nvidia, restricting sales of its most advanced AI chips to China.

Other Chinese players like Enflame Technology and Biren Technology have also entered the AI space to cater to the growing demand for graphics processing units (GPUs) no longer supplied by Nvidia.

Chinese regulators have been approving more semiconductor IPOs as part of their push for greater AI independence.

In a similar trend, Moore Threads, often dubbed as “China’s Nvidia,” saw its shares surge by over 400% on debut in Shanghai after a $1.1 billion listing.

Analysts like Eugene Hsiao from Macquarie attribute investor enthusiasm around Chinese AI-chip IPOs to expectations of China developing a self-sufficient semiconductor ecosystem amid U.S.-China tensions.

Hsiao emphasized the importance of players like Moore Threads and MetaX in this scenario, noting that investor interest is driven by both nationalistic sentiments and the companies’ growth potential.

— CNBC’s Dylan Butts contributed to this article.