Moore Threads, a notable Chinese GPU maker and competitor to Nvidia, saw its stock plunge 20% on Monday after a nine-month lockup period expired, allowing 25.8 million shares to become tradable. Though these shares account for only 5.5% of the company, their release significantly increased the trading pool, leading to a rapid decline in stock price to 415.48 yuan, its lowest since listing. Despite this drop, the shares remain up over 260% from their original purchase price.
Moore Threads has been part of China’s AI boom, previously experiencing a surge of 425% on its December IPO, driven by heightened interest in domestic AI technologies amid U.S. restrictions on advanced chip exports.
Interest in China’s AI sector continues, fueled by companies like Memory-chip maker CXMT, which raised a substantial amount in its recent IPO, illustrating the ongoing investor appetite in the tech landscape. However, analysts warn that Moore Threads faces significant competitive challenges moving forward, particularly concerning software and hardware. The company is also seeking a Hong Kong listing after recent shareholder approval.
