German media: Chinese chip startup MetaX surges 755% on its debut day

Amid the Sino-US technological competition and export controls, investors are betting on the growth potential of China's local AI chip manufacturers, hoping they can narrow the gap with Nvidia in the core hardware of AI. Following the recent rush to purchase shares of AI chip manufacturer Moore Threads at the beginning of this month, the stock of high-end chip startup MetaX surged on its debut day.

On December 17, the Chinese high-end chip manufacturer MetaX listed in Shanghai, with its stock price rising more than 750% on its debut day, reflecting market expectations that local Chinese chip companies could challenge American chip giant Nvidia.

Investors bet on the rise of Chinese chips

Previously, another Chinese chip company, Moore Threads, completed an initial public offering (IPO) worth as much as 1.1 billion US dollars, and its stock price soared by 425% after its listing at the beginning of this month.

Both MetaX and Moore Threads produce advanced chips known as graphics processing units (GPUs), used to run and train artificial intelligence tools.

Currently, the GPU market is dominated by Nvidia. Driven by global enthusiasm for artificial intelligence and optimistic expectations, Nvidia has become the world's most valuable company.

Although MetaX and Moore Threads are far smaller than Nvidia, analysts point out that investors are focusing on the potential of China's accelerated development of the chip industry, which could eventually compete with this American giant.

MetaX priced its IPO at 104.66 RMB per share (about 14.86 USD), raising about 585.8 million USD. After listing, the stock price soared to 895 RMB, an increase of 755%, before slightly回落 to 730.34 RMB.

Relaxation of Export Controls

China and the United States are locked in a fierce competition to dominate the field of artificial intelligence. It was reported that due to Washington's export restrictions on Nvidia's high-end chips, Beijing has been encouraging tech companies to use more domestic chips.

However, US President Trump said last week that he had reached an agreement with China allowing Nvidia to export its advanced H200 chips to China.

The H200 chip is technically about 18 months behind Nvidia's most advanced products, while the latter is still banned from being exported to China.

Nevertheless, this move marks a gradual relaxation of the export control policies implemented during the previous Biden administration by Trump.

The restrictions were first implemented in 2022, citing national security concerns, including worries that China might gain a technological advantage over the United States.

Policies Support and Capital Boost

Rui Ma, founder of Tech Buzz China, told AFP this month that export controls "created a protected market space for high-end chips in China."

She pointed out that under the combined effects of policy support and a more robust capital environment, the conditions faced by domestic GPU and AI accelerator companies today are "far better than in previous cycles."

"Therefore, companies such as Moore Threads, Cambric, MetaX, Biren, and Enflame are attracting significant investor attention."

Sources: DW

Original article: toutiao.com/article/1851864915256330/

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