SHANGHAI, Dec 17 — Shares in China’s MetaX, a maker of high-end chips used to power artificial intelligence systems, surged more than 750 per cent on their debut in Shanghai today, driven by investor optimism that the country could challenge US chip giant Nvidia.

The rally in MetaX Integrated Circuits Shanghai came less than two weeks after another Chinese chipmaker, Moore Threads, jumped 425 per cent following a US$1.1 billion (about RM4.49 billion) initial public offering.

Both companies produce advanced graphics processing units, or GPUs, which are used to run and train artificial intelligence tools.

The global GPU market is dominated by Nvidia, now the world’s most valuable company amid soaring demand and optimism around artificial intelligence.

While MetaX and Moore Threads are significantly smaller players, analysts say investors are betting on China’s push to scale up its domestic chip industry to eventually rival the US firm.

MetaX shares, which were priced at 104.66 yuan in an initial public offering that raised US$585.8 million, climbed as much as 755 per cent to 895 yuan before easing to 730.34 yuan.

China and the United States are competing for dominance in artificial intelligence, with Beijing reportedly encouraging technology firms to adopt homegrown chips in response to Washington’s export restrictions on top-end Nvidia products.

However, US President Donald Trump said last week that he had agreed with Chinese President Xi Jinping to allow Nvidia to export its advanced H200 chips to China.

The H200 chips are estimated to be around 18 months behind Nvidia’s most cutting-edge offerings, which remain restricted for export to China.

The decision marked a shift away from export curbs imposed under Trump’s predecessor Joe Biden.

Those restrictions were first introduced in 2022 over national security concerns, including fears that advanced technology could enhance China’s military capabilities.

Rui Ma, founder of the Tech Buzz China newsletter, told AFP this month that export controls had created a “protected high-end segment” for chips in China.

“Combined with policy support and much deeper capital pools, domestic GPU and AI accelerator companies now have far more favourable conditions than in prior cycles,” she said.

“As a result, firms such as Moore Threads, Cambricon, MetaX, Biren and Enflame are drawing significant investor interest.” — AFP