Advertisement
China stock market
BusinessChina Business

‘China’s little Nvidia’ Moore Threads warns of overheating risks after 723% share surge

Moore Threads shares drop 13 per cent on Friday after the GPU maker cautions investors to ‘make decisions prudently and invest rationally’

Reading Time:2 minutes
Why you can trust SCMP
2
“The company’s shares have had a big swing in recent days,” says Moore Threads. Photo: Getty Images
Zhang Shidongin Shanghai

A more than eight-fold surge in the share price of Chinese graphics processing unit (GPU) maker Moore Threads Technology has prompted the newly listed company to warn investors that the gains may have run ahead of fundamentals.

The Beijing-based chipmaker said in a statement to the Shanghai Stock Exchange on Friday that its shares could face the risk of declines after the rapid rally. There was no catalyst that needed to be disclosed and no material change in the company’s fundamentals, it said.

The warning came just a week after Moore’s high-profile debut on December 5, when the stock jumped 425 per cent to become the second-best performing new listing in Shanghai this year in terms of first-day trading. Despite the outsized gain, the shares climbed another 57 per cent through Thursday. In total, they had surged 723 per cent from the offer price of 114.28 yuan.
Advertisement

Moore’s stock tumbled by as much as 19 per cent to 758 yuan on Friday on the technology-heavy Star Market. It finished the day 13 per cent lower at 814.88 yuan.

“The company’s shares have had a big swing in recent days,” Moore said. “There may be a situation of overheating on the market and irrational speculation. Investors should be well aware of the trading risk and make decisions prudently and invest rationally.”

Founded by James Zhang in 2020, Moore Threads is now focusing on AI accelerator chips for training large language models. Photo: Handout
Founded by James Zhang in 2020, Moore Threads is now focusing on AI accelerator chips for training large language models. Photo: Handout
Euphoric demand for Moore’s shares underscores a massive pivot by Chinese investors to tech stocks after Beijing pledged to pull out all the stops to achieve its goal of tech self-reliance. The strategy was prioritised at a key economic policy meeting that concluded on Thursday and in a critical five-year development plan approved in October by the ruling Communist Party.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x