MetaX stock soars 700% in Shanghai debut as traders snap up Chinese GPU maker

MetaX stock soars 700% in Shanghai debut as traders snap up Chinese GPU maker

MetaX Integrated Circuits soared on its trading debut in Shanghai as investors piled into the second Chinese producer of graphics processing units (GPUs) to go public this month amid optimism about China’s push for self-sufficiency in semiconductors and artificial intelligence. The shares of the Shanghai-based company surged 693 per cent from the offer price to…

MetaX Integrated Circuits soared on its trading debut in Shanghai as investors piled into the second Chinese producer of graphics processing units (GPUs) to go public this month amid optimism about China’s push for self-sufficiency in semiconductors and artificial intelligence.

The shares of the Shanghai-based company surged 693 per cent from the offer price to 829.90 yuan at the close on Wednesday on the technology-heavy Star Market, making the five-year-old company the third-best performing debut on the mainland’s stock exchanges this year. They once surged by as much as 755 per cent to an intraday high of 895 yuan after opening 569 per cent higher than the offer price of 104.66 yuan.

The frenzy for MetaX underscores investors’ reaction to China’s ambitions in using domestically made chips to replace imports for powering AI applications and services, even after the US government relaxed some of the export restrictions on Nvidia. Less than two weeks ago, Moore Threads Technology, a local rival of MetaX that has been dubbed “China’s little Nvidia,” soared 425 per cent on its Shanghai trading debut.

“The company is one of the leading manufacturers of high-performance GPU products in China,” said Li Hui, an analyst at Huajin Securities. “It’s expected to fully benefit from the ongoing progress on the domestic substitution.”

MetaX raised 4.2 billion yuan (US$596.3 million) from selling 40.1 million shares in its initial public offering (IPO), ranking it the fifth-largest flotation on the mainland this year, according to Bloomberg data. Moore’s 8 billion yuan IPO was the second largest, behind the 18.2 billion yuan raised by Huadian New Energy Group.

MetaX was founded in 2020 by three former AMD employees, with chairman and general manager Chen Weiliang previously working as a senior director of the US chipmaker. The company said it would use its IPO proceeds to fund research and development on high-performance GPUs. It offers a range of GPUs for AI inference, general-purpose computing and graphics rendering.

Similar Posts