MetaX Integrated Circuits experienced a remarkable debut on the Shanghai Stock Exchange, with its shares skyrocketing amidst a growing interest in domestic semiconductor production and artificial intelligence. As the second GPU manufacturer to launch an initial public offering (IPO) this month, MetaX debuted at 700 yuan, representing a staggering 569% increase from its initial offering price of 104.66 yuan. This surge places the five-year-old firm among the top four trading debuts in Shanghai’s stock market for the year.
The enthusiastic response to MetaX’s shares reflects the heightened investor sentiment surrounding China’s strategic initiative to bolster self-sufficiency in semiconductor technology, particularly in the realm of AI. This enthusiasm persists despite recent relaxations in U.S. export restrictions on major competitor Nvidia. Just two weeks prior, another local firm, Moore Threads Technology, which has been likened to “China’s little Nvidia,” also experienced a substantial rise, with its shares surging 425% upon debut.
In its IPO, MetaX successfully raised 4.2 billion yuan (approximately US$596.3 million) by issuing 40.1 million shares, making it the fifth largest IPO on the mainland this year, according to Bloomberg data. This achievement places it behind Moore Threads, which secured 8 billion yuan, and Huadian New Energy Group, which set the benchmark with an 18.2 billion yuan raise.
Founded in 2020 by former employees of AMD, MetaX plans to utilize the funds acquired from its IPO to enhance research and development efforts focused on high-performance GPUs. The company currently offers a variety of GPUs aimed at applications in AI inference, general-purpose computing, and graphics rendering. Notably, MetaX’s flagship product, the C600 chip, is poised for mass production, following its anticipated launch in July, while the development of its next-generation C700 chip is also underway.
This strong debut not only highlights investor optimism but also marks a significant milestone in China’s relentless pursuit of technological independence in the semiconductor sector.
