Details
🧨 Rocket start: Moore Threads jumped in Shanghai from 114.28 CNY (16 USD) per share to as high as 650 CNY (92 USD): a gain of around 470 percent on the first trading day.
💸 Money rain in Silicon Dragon style: The IPO raised 8 billion CNY (1.13 billion USD). The retail tranche was oversubscribed more than 2,700 times. Some bid amounts even exceeded Nvidia’s market capitalization.
🎮 GPU made at home: Moore Threads builds GPUs for AI data centers and gaming applications. The company benefits from Nvidia’s limited presence and the political desire to build a fully local chip supply chain.
📊 Valuation beyond gravity: The price to sales ratio is around 123. This puts the stock clearly above the average of other GPU manufacturers. The company is still loss making but expects revenue to jump to 1.2 to 1.5 billion CNY next year.
Background
Moore Threads was founded in 2020 by Zhang Jianzhong, the former China head of Nvidia. The company is a central player in China’s goal to build a domestic GPU industry that is less dependent on US technologies.
The Shanghai Stock Exchange has relaxed listing requirements for unprofitable tech companies to promote exactly such firms.
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