• MetaX shares jumped nearly 600% on their trading debut in Shanghai.
• The IPO raised approximately $600 million, marking a significant milestone for China's chip industry.
• Investors are optimistic about China's ambitions for semiconductor self-sufficiency amid U.S. tech rivalry.

Chinese AI chipmaker MetaX Integrated Circuits saw its shares soar nearly 600% during their trading debut in Shanghai, opening at 700 yuan compared to an IPO price of 104.66 yuan. This marks a notable event as investors eagerly embrace the second GPU maker to list within a month, following a similar trend seen with rival Moore Threads, which saw a 425% jump upon its debut.

Raised funds will be allocated towards further development and industrialization of high-performance GPUs, focusing on AI applications. Investors’ enthusiasm reflects a collective optimism toward enhancing China's semiconductor production capabilities amidst increasing reliance on domestically manufactured technology, particularly in a context of U.S. restrictions on chip exports, particularly impacting companies like Nvidia.

With an intended use of proceeds from the IPO for advancing GPU capabilities, the rapid rise in MetaX's stock underscores the market's expectation for profitability in the impending future, despite the company previously posting a loss attributed to significant R&D investments. Analysts are noting the potential for substantial growth in China's AI chip sector, projecting sales to surge to $189 billion by 2029.