In a rare blockbuster debut, Chinese AI chipmaker MetaX Integrated Circuits grabbed global attention after its shares surged as much as 755% on their first day of trading on China’s STAR Market. The overwhelming demand for the Chinese producer of graphics processing units (GPUs) indicates strong investor appetite for homegrown AI chipmakers as Beijing accelerates its drive to cut reliance on foreign semiconductor firms such as Nvidia and Advanced Micro Devices (AMD).

The Shanghai-based company’s shares jumped 693% from the issue price to close at 829.90 yuan on Wednesday on the tech-heavy STAR Market, pushing the company’s market capitalisation above 332 billion yuan (approximately $46 billion). The stock opened 569% above the offer price of 104.66 yuan and climbed as much as 755% intraday, hitting a high of 895 yuan.

Here are 10 things to know about China’s newest GPU stock market sensation:

1. Spectacular stock market debut

The five-year-old firm made one of the most explosive stock market debuts in China this year, ranking as the third-best performing debut on mainland exchanges in 2025.

2. Second GPU IPO this month

MetaX is the second Chinese GPU maker to list in July, following Moore Threads Technology, whose shares jumped over 400% on debut.

3. Founded by former AMD executives

Established in 2020, MetaX was founded by Chen Weiliang, Peng Li and Yang Jian, all former AMD engineers. Chen previously spent 13 years at AMD Shanghai and served as a senior director.

4. Seen as a domestic Nvidia alternative

Investors view MetaX as part of China’s push to replace imported AI chips from Nvidia and AMD with homegrown alternatives amid ongoing U.S. technology restrictions.

5. What MetaX makes

The company designs GPUs used for AI inference, general-purpose computing and graphics rendering, targeting data centres and AI-driven applications.

6. Big IPO despite losses

MetaX raised 4.2 billion yuan ($596 million) by selling 40.1 million shares. The IPO was more than 4,000 times oversubscribed by retail investors, despite the company remaining loss-making.

7. Financial performance

The company posted a net loss of 1.41 billion yuan in 2024, while revenue rose to around 743 million yuan, representing a more than tenfold increase from earlier years. For the first nine months of 2025, MetaX reported a further loss of 345.5 million yuan, even as revenue climbed to 1.24 billion yuan, up over 400% year-on-year.

8. Among the largest listings this year

Its IPO ranks among the top six mainland flotations in 2025, according to KPMG and Bloomberg data.

9. Valuation sparks debate

MetaX’s IPO valued the company at about 50 times its 2024 sales, far higher than global peers such as Nvidia (around 34x) and AMD (around 14x), fuelling debate over AI stock valuations.

10. Small market share, big ambitions

MetaX currently controls roughly 1% of China’s AI chip market, but expects revenue to more than double this year and aims to break even as early as next year, driven by domestic substitution policies.

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