Chinese graphics chip manufacturer MetaX debuted on the Shanghai stock exchange today, reaching a valuation of 755%, reflecting investors’ enthusiasm for local alternatives to Nvidia and China’s commitment to technological self-sufficiency.
The company’s shares opened at 700 yuan (84.7 euros) per unit, well above the subscription price set for the initial public offering (IPO), of 104.66 yuan (about 12.5 euros). Around 10:30 am local time (2:30 am, in Lisbon), bonds rose by 755%.
MetaX placed more than 40 million shares on the market, raising the equivalent of 596 million dollars (507 million euros), in the fifth largest operation of its kind in mainland China this year. The second largest was led by chip manufacturer Moore Threads, which raised around 1,131 million dollars (963 million euros).
According to the local press, MetaX’s strong performance was driven by the enthusiasm generated by the recent debut of Moore Threads, whose demand from investors exceeded the number of shares available by 2,751 times. In the case of MetaX, the ratio was even higher: 2,986 times.
In addition to the stock market appreciation, both cases reflect the Chinese Government’s efforts to ensure technological self-sufficiency, a strategic priority in the face of the trade war with the United States and the restrictions imposed on the export of advanced semiconductors to the Chinese market, which forced Nvidia to reduce its presence in China.
In recent days, the Chinese press reported that Beijing will be rejecting Nvidia’s H200 chips – more powerful than those previously authorized by Washington – in favor of national solutions, such as those developed by MetaX.
Founded in 2020 by former AMD engineers, MetaX will use the funds raised to finance research and development (R&D) activities for high-performance graphics cards, including products aimed at artificial intelligence applications.
Its main ‘chip’ for general computing, the C600, is expected to go into production soon, after being announced in July. The next generation, C700, is still in the development phase.
Despite the strong growth, MetaX, like Moore Threads, continues to record losses, expecting to reach the financial break-even point only in 2026. Even so, in the first three quarters of this year, the company quadrupled its revenue.