This Chinese GPU IPO Just Soared 425%. Has NVIDIA Met its Match?

"For now, it's tough for U.S. investors to get a piece of Moore Threads, a firm that many may never have heard of prior to its multi-bagger IPO session last week. The company, which, like Nvidia, makes GPUs (Graphics Processing Units) to power the AI boom, might be worth keeping tabs on, especially if you have a lot of skin in the AI race with the U.S. AI innovators and hyperscalers."

"But even if it were readily accessible on the U.S. markets by way of an American Depository Receipt (ADR), would you really want to pick up a few shares, given how heated and potentially overvalued they are after the IPO boom? Personally, I think the name is way too hot to handle at a time like this, especially when you consider the high risk of a pullback that could certainly exceed 50% or even 75%."

Moore Threads surged roughly 425% on its public market debut, drawing attention as a Chinese GPU maker targeting AI workloads. The company produces GPUs similar in purpose to Nvidia's, aiming to serve AI innovators and hyperscalers. U.S. investors face limited access without ADRs or broker access to the right exchanges. The IPO rally creates substantial short-term valuation risk, with potential pullbacks exceeding 50% to 75%. Nvidia maintains a stronger market position and valuation appeal for many investors. Warnings that the U.S. lead over China in AI may be narrow suggest continued competition and possible Chinese surprises ahead.

Read at 24/7 Wall St.