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Shares of Chinese chipmaker MetaX Integrated Circuits soared nearly 700% in their market debut in Shanghai on Wednesday, after the company raised nearly $600 million in its initial public offering.
Shares, which were priced at 104.66 yuan in the IPO, closed at 829 yuan on debut, marking a 692% jump.
Similar to Moore Threads, which saw a robust debut at the start of the month, MetaX develops graphics processing units for artificial intelligence applications, tapping into a fast-growing sector driven by rising adoption of AI services.
MetaX is part of a growing cohort of local chipmakers building AI processors, reflecting Beijing’s push to reduce dependence on U.S. chips following Washington’s tech curbs on export of high-end technology to China.
Washington has imposed export curbs on U.S. chip behemoth Nvidia, barring sales of its most advanced AI chips to China.
Newer Chinese players such as Enflame Technology and Biren Technology have also entered the AI space, aiming to capture a share of the billions in graphics processing unit, or GPU, demand no longer served by Nvidia. Chinese regulators have also been clearing more semiconductor IPOs in their drive for greater AI independence.
Earlier this month, shares of Moore Threads, a Beijing-based GPU manufacturer often referred to as “China’s Nvidia,” soared by more than 400% on its debut in Shanghai following its $1.1 billion listing.
Macquarie’s equity analyst Eugene Hsiao said investor enthusiasm around Chinese AI-chip IPOs such as MetaX is partly shaped by longer-term expectations that China will build a self-sufficient semiconductor ecosystem as tensions with the U.S. persist.
“For that to work, you need these players. You need names like Moore Threads, Meta X, etc,” he said.
“So I think when investors are looking at these IPOs, they implicitly are thinking about the nationalistic element,” Hsiao noted, adding that the main driver of the frenzy, however, was the firms’ growth potential.
— CNBC’s Dylan Butts contributed to this article.
