MetaX Shares Jump 700% in Shanghai Debut as China Backs Local AI Chips

TLDR

• MetaX Integrated Circuits surged 700% on its Shanghai stock market debut, closing at 829.9 yuan from an IPO price of 104.66 yuan
• The Chinese AI chipmaker raised $600 million in an IPO that was oversubscribed more than 4,000 times by retail investors
• Founded by former AMD executives, MetaX now has a market valuation exceeding $42 billion despite controlling only 1% of China’s AI chip market
• The debut follows Moore Threads’ 400% pop in November and comes as Beijing pushes to reduce dependence on U.S. chip companies like Nvidia and AMD
• Multiple Chinese AI chipmakers including Biren Technology and Kunlunxin are rushing to launch IPOs amid government support for domestic semiconductor development

MetaX Integrated Circuits shares closed 693% higher on their first day of trading in Shanghai on Wednesday. The Chinese AI chipmaker ended the session at 829.9 yuan per share after opening at 700 yuan, far above its IPO price of 104.66 yuan.

The company raised approximately $600 million through its initial public offering last week. Retail investors oversubscribed the offering more than 4,000 times, showing strong demand for Chinese semiconductor stocks.

MetaX’s debut pushed the five-year-old startup’s valuation past 300 billion yuan, or $42.58 billion. The company was founded by Chen Weiliang, 49, who previously worked at AMD Shanghai for 13 years.

Chen started MetaX with former AMD engineers Peng Li and Yang Jian. The founding team aimed to contribute to China’s technology independence efforts.

The IPO priced the money-losing startup at 50 times its 2024 sales. This compares to a multiple of 34 for Nvidia and 14 for AMD, according to MetaX’s pre-listing statement.

Chinese Government Drives AI Chip Investment

Beijing is supporting local chipmakers as part of its push to reduce reliance on U.S. technology. Washington has imposed export restrictions on advanced chips from Nvidia and AMD to China.

Research firm Frost & Sullivan forecasts China’s AI chip sales will reach $189 billion by 2029, up from $54 billion in 2026. MetaX currently controls 1% of China’s AI chip market but projects sales will more than double this year.

The company expects to break even as early as next year. It manufactures graphics processing units for artificial intelligence applications, competing with domestic rivals Moore Threads, Hygon Information Technology, and Biren.

MetaX’s listing follows Moore Threads’ Shanghai debut in late November, where shares jumped 400%. Moore Threads, often called “China’s Nvidia,” raised $1.1 billion in its IPO.

Several other Chinese AI chipmakers are preparing to go public. Biren Technology received regulatory approval for a Hong Kong IPO on Monday, while Kunlunxin also plans to list in the city.

Enflame has hired Citic Securities to prepare for a stock market flotation. Chinese regulators are approving more semiconductor IPOs to support domestic technology development.

Market Concerns and Competition

Fund managers have warned about excessive valuations in the sector. Yang Tingwu at Tongheng Investment said the price surge creates arbitrage opportunities for pre-IPO investors but suggested the stock may be at peak levels for the next five years.

Yuan Yuwei at Trinity Synergy Investments said there is “definitely froth” in MetaX’s share price. He noted the company’s technology lags behind Moore Threads and faces tough competition from Huawei and Alibaba.

MetaX identified several risks in its IPO prospectus. These include potential supply chain disruptions from U.S. technology restrictions and a technology gap with Nvidia and AMD.

The company competes with multiple domestic players in different chip segments. In the ASIC chip business, rivals include Cambricon, Huawei’s HiSilicon, Baidu’s Kunlunxin, and Alibaba’s T-Head.

IPO fundraising in China increased 23% in 2025 from the previous year, exceeding 160 billion yuan according to KPMG. The technology, media, and telecom sector received 23% of total IPO proceeds.

Macquarie analyst Eugene Hsiao said investor enthusiasm stems partly from expectations that China will build a self-sufficient semiconductor ecosystem. The nationalistic element drives interest, though growth potential remains the main factor behind the IPO frenzy.

President Donald Trump recently approved exports of Nvidia’s second-fastest AI chips to China. Nvidia is considering adding production capacity for its H200 AI chips due to strong Chinese orders.

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