MetaX soars 700% in IPO as China ramps up AI chip push
Shares of MetaX Integrated Circuits exploded on their first day of trading in Shanghai, jumping as much as 700% as investors piled into China’s fast-growing push to build home-grown artificial intelligence chips and reduce reliance on U.S. giants like Nvidia and AMD.
Founded by former AMD executive Chen Weiliang, the GPU maker raised about 4.2 billion yuan ($600 million) in an IPO that was more than 4,000 times oversubscribed by retail investors — a sign of the intense enthusiasm surrounding China’s semiconductor self-sufficiency campaign, News.Az reports, citing Reuters.
MetaX shares opened at 700 yuan, compared with an IPO price of 104.66 yuan, and briefly surged to nearly 895 yuan, immediately triggering debate over whether the rally reflects long-term potential or a speculative bubble.
“It’s another Chinese IPO story where a crow turns into a phoenix,” said Yang Tingwu, a fund manager at Tongheng Investment, warning that the stock may already be near its peak for years to come.
MetaX’s blockbuster debut comes just days after rival Moore Threads surged around 400% in its own market debut. Together, the listings highlight a broader rush by Chinese AI chipmakers to tap capital markets as Beijing prioritizes domestic semiconductor production amid ongoing U.S.–China tech tensions.
Analysts say artificial intelligence and semiconductors have become central battlegrounds in the geopolitical rivalry, with policymakers accelerating approvals for IPOs in strategic technology sectors.
Market researcher Frost & Sullivan forecasts China’s AI chip market to grow rapidly, with sales expected to reach $189 billion by 2029, up sharply from an estimated $54 billion in 2026.
Despite still being unprofitable, MetaX was valued at roughly 50 times its 2024 sales at IPO — significantly higher than Nvidia’s multiple of 34 and AMD’s 14, according to company disclosures. The firm currently holds about 1% of China’s AI chip market but expects revenue to more than double this year and aims to break even as early as next year.
Fund managers note that while Chinese chipmakers trail U.S. leaders technologically, massive fundraising could help close the gap.
“If domestic firms can raise tens of billions and invest heavily in talent, breakthroughs can’t be ruled out,” said Yuan Yuwei of Trinity Synergy Investments.
MetaX has warned investors about several risks, including U.S. technology restrictions, supply chain disruptions, and a significant technology gap with global leaders Nvidia and AMD. Competition at home is also fierce, with rivals ranging from Moore Threads and Biren Technology to heavyweight players backed by Huawei, Alibaba, and Baidu.
Even as enthusiasm around AI and chips continues to dominate Chinese markets, some analysts caution that current prices may already reflect overly optimistic expectations.
“There is room for improvement,” Yuan said, “but under current circumstances, there’s definitely froth in MetaX’s share price.”
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