AI boom fuels Nvidia challengers 400% IPO surge
On Friday December 5, 2025, Nvidia competitor Moore Threads Technology Co., had its trading debut on the Shanghai Stock Exchange. The initial offering price was 114.28 yuan, and the shares closed at 600.50, up more than 400%, after hitting a peak of 688 yuan during the trading day. The initial offering price equals about $16.15 US Dollar, and the closing price approximately $84.84 US Dollar. The Initial Public Offering drew strong investor interest, with the retail portion being oversubscribed 2750 times even after a clawback. The IPO raised more than $1 Billion. Is this IPO a sign that the AI bubble is growing bigger and how will it affect the industry leader Nvidia?
Moore Threads Technology Co. was founded in 2020 by former Nvidia executive Zhang Jianzhong. The company initially earned revenue from graphics chips for gaming and visual rendering before pivoting to AI accelerators used in powering large language models. The company experienced a major setback in October 2023 when the US Commerce Department added the firm to the Entity List, barring access to key technologies, a move that caused job cuts and restructuring. Despite these setbacks, investor optimism has kept growing as Beijing has promoted the sector as a key part of its push into technological supremacy.
A few weeks ago, the industry leader Nvidia reported better-than-expected third-quarter earnings, both in revenue and earnings per share. These results toned down the fear of a growing AI bubble and somewhat restored investor confidence in the sector. Nvidia’s share price surged on the news but later returned to previous levels and is currently trading at around $182 US Dollar per share (Yahoo Finance, 08.12.2025). Recently Nvidia CEO Jensen Huang said that it takes about 3 years to build data centers in the US, while China is able to construct hospitals in a weekend. He expressed concern that China has a clear advantage over the US when it comes to construction and energy. Earlier in November President Donald Trump said that he would not allow anyone other than the United States gain access to Nvidia’s most advanced chips. However, he did not rule out the possibility that Chinese companies could obtain less capable versions of the chips. Vontobel offers a wide range of leverage products with Nvidia as underlying, allowing potential investors to gain both long and short exposure depending on their view.
Since Nvidia’s departure from the Chinese market, Chinese semiconductor designers have been scrambling to fill the resulting gap. Jensen Huang has previously said that China represents a $50 billion market for AI infrastructure, growing at 50% per year. Without Nvidia’s presence, there is a significant opportunity for Chinese companies to capitalize on. Clearly, an IPO that surges more than 400% on the first trading day indicates a strong appetite and demand for AI-related investments in China. More Chinese firms will likely follow Moore Threads Technology’s lead and pursue IPOs as well, given its success. How will this affect Nvidia and the market as a whole?
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