MetaX, founded by former AMD executives, raised roughly $600 million in its initial public offering last week. The stock opened at 700 yuan per share, far above the IPO price of 104.66 yuan, surged to an intraday high of 895 yuan, and closed at 829.9 yuan—up 693% from its offering price. Analysts called the performance “another IPO tale in China that turns a crow into a phoenix,” highlighting huge gains for pre-IPO investors.
The IPO follows a wave of Chinese AI chip listings, including Moore Threads, which surged 400% shortly before MetaX. Investors are betting on the long-term potential of domestic AI chipmakers as China seeks to achieve self-sufficiency in the sector amid U.S.-China tech tensions.
“AI and semiconductors are key areas of competition in the Sino-U.S. tech rivalry,” said Guotai Haitong Securities in a report. “Against the backdrop of geopolitical tension, AI chipmaking has huge growth potential.” Frost & Sullivan projects China’s AI chip sales to reach $189 billion by 2029, up from $54 billion in 2026.
MetaX, which produces graphics processing units (GPUs), saw its IPO oversubscribed by more than 4,000 times from retail investors. The offering, China’s sixth largest of 2025, valued the five-year-old startup at over 300 billion yuan ($42.6 billion), more than 50 times its projected 2024 sales. By comparison, Nvidia trades at 34 times sales, while AMD is valued at 14 times.
Founder Chen Weiliang, a former AMD Shanghai executive, said he started MetaX to “contribute to China’s rejuvenation and national prosperity.” The founding team also includes former AMD engineers Peng Li and Yang Jian. Analyst Li Hui of Huajin Securities said MetaX’s “AMD gene” positions it as a leading domestic GPU maker that could benefit from China’s push to replace foreign suppliers with home-grown technology.
Currently controlling 1% of China’s AI chip market, MetaX expects to more than double its sales this year and anticipates breaking even as soon as next year, driven by government support for domestic chip production.
MetaX’s debut comes as other Chinese AI chip startups pursue public listings. Moore Threads raised $1.1 billion in Shanghai in late November, while Biren Technology recently received approval to list in Hong Kong, and Kunlunxin is preparing its IPO. Fund manager Yuan Yuwei of Trinity Synergy Investments said policymakers are deliberately greenlighting these IPOs to accelerate domestic advanced technology development.
Despite the excitement, MetaX acknowledged risks in its IPO prospectus, including supply chain disruptions from U.S. technology restrictions and a significant technology gap with Nvidia and AMD. Domestically, the company faces competition from Moore Threads, Hygon, Biren, Cambricon, Huawei’s HiSilicon, Baidu’s Kunlunxin, and Alibaba’s T-Head.
“MetaX’s technology lags Moore Threads, and it faces stiff competition from Huawei and Alibaba,” Yuan said. “There is room to improve, but under the current circumstances, there’s definitely froth in its share price.”
The company’s strong debut underscores both the investor appetite for AI chip exposure and China’s determination to develop a self-sufficient semiconductor industry amid ongoing geopolitical tensions.