“China’s Nvidia (NVDA)” has jumped over 500% on its stock market debut as the Asian state becomes more independent of the U.S. in the race for AI supremacy.
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China Has Value
Beijing headquartered Moore Threads, raised $1.1 billion following its initial listing on Shanghai’s stock exchange, with its valuation then surging to over $40 billion.
The Chinese tech firm designs graphics processing units, or GPUs, the same type of chip that has powered Nvidia into the world’s most valuable company with a valuation of more than $4.5 trillion.
Given U.S. export restrictions on Nvidia chips, the trade tariff war and China’s President Xi’s determination to build up a domestic supply chain to see off U.S. competition, Chinese chips development have been in vogue.
There are a bunch of Chinese businesses working on designing their own technology, including Moore Threads, which was founded just five years ago by Zhang Jianzhong, a former Nvidia executive. Its technology relies on software that is compatible with that of Nvidia’s.
“Our goal is to become a leading GPU player with international competitiveness,” Mr Zhang told the Shanghai Securities Journal.
Notable Investor Backing
Its biggest investors include Bytedance, the Beijing-based owner of TikTok, and Lian Wenfeng, the founder of AI startup DeepSeek, which shook U.S. stock markets earlier this year with its cheaper but just as effective large language model.
These stocks are getting growing attention not just from investors at home but from those in the U.S., U.K. and Europe via Chinese-focused ETFs. The bet is that Chinese companies are building just as effective technology but with stocks at much cheaper valuations.
There are risks of course. President Xi’s warm embrace of private companies has only been reignited this year following a deep freeze where state companies were more in favor.
There is a threat that his whims might turn again if private companies garner too much power and influence.
Moore Threads is also heavily loss-making at present, with its revenues being eclipsed by those U.S. rivals including Nvidia. But American tech titans need to be wary.
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