By Eleanor Olcott
Publication Date: 2025-12-05 04:55:00
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A Chinese chipmaker founded by a former Nvidia executive has surged fivefold in its market debut as investors bet on Beijing’s drive to reduce the country’s reliance on the US chip giant for artificial intelligence needs.
Beijing-based Moore Threads raised Rmb8bn ($1.1bn) in its listing on Shanghai’s tech-focused Star Market on Friday, marking the second-largest mainland initial public offering this year.
Shares of mainland Chinese chipmakers and chip designers have soared this year as investors bet on Beijing’s efforts to create a local supply chain for components crucial to the AI boom.
Washington has barred Nvidia from selling its most advanced AI processors in China, while Beijing has instructed its tech companies to transition away from the products.
Founded in 2020 by Zhang Jianzhong, a former senior Nvidia executive in China, Moore Threads is viewed as a second-tier domestic chipmaker, lagging far behind Huawei and chip designer Cambricon in market share.
Analysts at Bernstein estimate Moore Threads will sell $58mn worth of chips this year, compared with roughly $10bn each for Huawei and Nvidia.
By 2026, Huawei’s sales are forecast to rise to $12bn, representing about half of China’s AI chip market, while Moore Threads is projected to generate $93mn.
Nvidia’s China sales are expected to plunge to $2bn next year, with its market share…