The GPU market is poised for remarkable growth, with projections indicating an increase from RMB 142.5 billion in 2024 to RMB 1,336.8 billion by 2029. This surge represents a compound annual growth rate (CAGR) of 53.7% between 2025 and 2029. A recent report by China Postal Securities highlights the significance of the domestic computing power industrial chain, which includes key players such as Muxi Chain, Moore Chain, Hygon Chain, Cambrian Chain, and Huawei Chain.
In a significant development, domestic GPU manufacturers are experiencing a wave of initial public offerings (IPOs). On December 5, Moore Threads, a leader in the domestic GPU field, made a notable debut on the STAR Market, with its shares skyrocketing by 468.8% on the first trading day and achieving a market valuation of RMB 305.5 billion, positioning it among the top five companies on the STAR Market by capitalization. Shortly after, on December 17, Muxi Co., Ltd. followed suit and became the second domestic GPU firm to go public. Its stock surged by an astonishing 692.95% on its inaugural trading day.
Further developments occurred on December 17, when Biren Technology successfully passed the Hong Kong Stock Exchange’s listing hearing and is expected to become the first GPU stock listed in Hong Kong. Just two days later, on December 19, TianShu ZhiXin, known for its general-purpose GPU capabilities, also passed the listing hearing in Hong Kong.
Moore Threads and Muxi Co., Ltd. are notably focused on the domestic GPU sector. Moore Threads offers a comprehensive range of products, including full-function GPUs, building an end-to-end system that spans chips, boards, clusters, and software ecosystems. This diverse portfolio includes solutions for AI computing, professional graphics, desktop GPUs, and intelligent system-on-chips (SoCs). On the other hand, Muxi Co., Ltd. specializes in heterogeneous computing and boasts a full-stack GPU product lineup which includes the XiSi N series (AI inference), XiYun C series (general computing), and XiCai G series (graphics rendering). Their proprietary architecture and high-speed interconnection technology support various applications ranging from AI computing to cloud gaming.
Established in 2019, Biren Technology has rapidly advanced to the forefront of domestic GPU manufacturing, recognized among the “Four Little Dragons of Domestic GPUs,” along with Moore Threads, Muxi, and Suiyuan Technology. This company has made significant strides in developing general-purpose graphics processing units (GPGPU) and intelligent computing solutions. TianShu ZhiXin has made history by being the first domestic enterprise to mass-produce training and inference general-purpose GPUs, with a product lineup that addresses all AI computing scenarios.
A forecast from Frost & Sullivan expects the global GPU market to exceed RMB 1 trillion in 2024, with a CAGR of 24.5% anticipated from 2025 to 2029. The growth within the Chinese GPU market is projected to be even more robust, driven by escalating demand tied to advancements in AI technology, which is significantly affecting GPU demand dynamics.
Despite the enormous potential, the competitive landscape remains challenging. NVIDIA and AMD currently dominate the global GPU market, with NVIDIA maintaining a leading position due to its advanced GPU architecture and established CUDA software ecosystem. A report by CITIC Construction Investment Securities outlines that domestic chip ecosystem development is taking two primary paths: one led by GPGPU manufacturers like TianShu ZhiXin, Muxi, and Hygon, which focus on compatibility with NVIDIA’s CUDA to reduce migration costs for clients; the other is represented by Huawei’s Mindspore, which aims to cultivate an independent ecosystem to compete directly with established players.
The report from China Postal Securities also emphasizes the interconnectedness of domestic computing power industrial chains, suggesting services and collaborations across various companies within the Muxi, Moore, Hygon, Cambrian, and Huawei chains, which could lead to further synergy and development in the GPU sector.
