MetaX Stock Jumps 700% on IPO as China Backs Domestic AI Chipmakers

Chinese AI chipmakers are moving quickly to list. Photo: Reuters

Shares of MetaX Integrated Circuits leapt around 700% on their first day of trading in Shanghai on Wednesday, as investors rushed to gain exposure to China’s drive to reduce dependence on US AI chip giants Nvidia and AMD.

Founded by former AMD executive Chen Weiliang, MetaX raised about $600 mln in its initial public offering last week. The listing followed the strong debut of rival Moore Threads, whose shares jumped about 400% earlier this month. MetaX stock opened at 700 yuan, compared with an IPO price of 104.66 yuan, and climbed as high as 895 yuan in early trading, reigniting concerns about a potential AI bubble.

Fund manager Yang Tingwu of Tongheng Investment said the surge created major arbitrage opportunities for early investors and warned the stock may have reached its peak for years.

Policy support and rising competition

Chinese AI chipmakers are moving quickly to list as Beijing encourages domestic production amid growing technology rivalry with the US. Analysts say artificial intelligence and semiconductors have become central to strategic competition, with strong growth expected as China seeks greater self-sufficiency. Consultancy Frost and Sullivan forecasts China’s AI chip market to reach $189 bn by 2029, up from $54 bn in 2026.

MetaX, which develops graphics processing units, raised 4.2 bn yuan in an IPO that was more than 4,000 times oversubscribed by retail investors. The loss-making company was valued at around 50 times its 2024 sales, compared with lower multiples for Nvidia and AMD. MetaX currently holds about 1% of China’s AI chip market and expects revenue to more than double this year, with break-even possible as early as next year.

At the same time, the company warned of risks including supply chain disruption from US technology restrictions and a significant technology gap with leading global rivals. Analysts also point to intense competition from domestic players such as Moore Threads, Huawei, Alibaba and Baidu-backed chip units, saying enthusiasm for the stock may have run ahead of fundamentals.

Kursiv also reports that Nvidia CEO Jensen Huang has issued a stark warning about China’s accelerating momentum in artificial intelligence.