Chinese AI Chipmaker MetaX Shares Surge Nearly 700% in Explosive Market Debut
GeokHub
Contributing Writer
SHANGHAI — Dec 17, 2025 Shares of MetaX Integrated Circuits, a Chinese artificial intelligence chipmaker founded by former AMD executives, surged nearly 700% on their first day of trading in Shanghai, as investor enthusiasm swelled around Beijing’s push to reduce reliance on U.S. chipmakers such as Nvidia and Advanced Micro Devices.
The stock opened at 700 yuan per share, compared with an IPO price of 104.66 yuan, and climbed as high as 895 yuan before closing at 829.9 yuan, marking one of the most dramatic market debuts in China this year.
Summary
- MetaX shares jumped nearly 700% in Shanghai debut
- IPO raised about $600 million amid China’s AI self-reliance drive
- Founded by former AMD executives, company makes AI GPUs
- Analysts warn of valuation froth and technology gaps with U.S. rivals
IPO Fueled by China’s AI Self-Sufficiency Push
MetaX raised 4.2 billion yuan ($596 million) in its initial public offering last week, with the share sale more than 4,000 times oversubscribed by retail investors, according to company disclosures.
The offering came just days after rival Moore Threads, often dubbed “China’s Nvidia,” surged 400% in its own Shanghai debut, underscoring intense investor appetite for domestic AI chipmakers.
Makers of AI chips are increasingly rushing to list in China as policymakers encourage home-grown semiconductor development amid rising geopolitical tensions with the United States.
Valuation Concerns and Market Optimism
MetaX’s IPO priced the loss-making startup at roughly 50 times its 2024 sales, significantly higher than comparable multiples for Nvidia and AMD.
“It’s another IPO tale in China that turns a crow into a phoenix,” said Yang Tingwu, a fund manager at Tongheng Investment, adding that the rally has created major arbitrage opportunities for early investors.
However, Yang cautioned that the debut price may represent the stock’s peak for years to come.
Founded by Former AMD Engineers
Founded five years ago by Chen Weiliang, a former AMD Shanghai executive, MetaX focuses on graphics processing units (GPUs) for AI workloads. Chen, 49, worked at AMD for 13 years before launching the company with fellow former AMD engineers Peng Li and Yang Jian.
The company’s successful debut pushed its market valuation above 300 billion yuan ($42.6 billion), significantly boosting the wealth of its founder and early backers.
Analysts say MetaX has benefited from its engineering pedigree.
“It is a leading GPU maker in China thanks to its AMD gene,” said Li Hui, an analyst at Huajin Securities.
Rapid Growth Forecast, But Risks Remain
MetaX currently holds around 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, driven by demand for domestic alternatives to foreign chips.
Industry researcher Frost & Sullivan forecasts China’s AI chip market will reach $189 billion by 2029, up from $54 billion in 2026.
Still, MetaX acknowledged in its IPO prospectus that it faces significant technology gaps compared with Nvidia and AMD, as well as supply-chain risks linked to U.S. export restrictions.
Crowded Competitive Landscape
MetaX competes domestically with companies including Moore Threads, Hygon Information Technology, and Biren Technology, while also facing competition from tech giants such as Huawei, Alibaba, and Baidu in specialized AI chip segments.
“MetaX’s technology still lags its top competitors, and competition is intense,” said Yuan Yuwei, a fund manager at Trinity Synergy Investments.
“There’s room for improvement, but there’s also clear froth in the share price.”
