Chinese Nvidia's $1.1 Bn IPO Gets 4,126x Subscriptions — More Than Competitor Nvidia's Market Cap

Moore Threads, often regarded as China's version of Nvidia, is coming out with a hefty $1.1 billion IPO in Shanghai's STAR market. As of Thursday, the IPO has already been oversubscribed 4,126 times.

That accounts for a staggering total of $4.54 trillion worth of capital - more than rival Nvidia's market capitalisation - trying to chase an early-stage competitor of Nvidia, the world's most valued company.

It is by far the most anticipated IPO in the Chinese market this year and its oversubscription rate is just an indicator of the market hunger for an Nvidia competitor.

Founded by former Nvidia employees, Moore Threads is a GPU-maker looking to capitalise on the domestic opportunity in Chinese markets.

The company operates in a similar way Nvidia does: it builds chips for gaming and AI computing.

Moore Threads is a relatively new company, though, having been founded in 2020. The company is still in its early stages and requires funds to become profitable, which is why its raising $1.1 billion through IPO.

Proceeds of the IPO will directly go to research and development for next-generation GPU technologies, which is a critical step for Moore Threads, as it looks to rely on innvoation to cut costs against giants Nvidia.

Moore Threads has already been helped by the United States' tight export control, which has allowed Nvidia to lose all market leverage in China, thus paving the way for Chinese companies to come out with alternatives.

While only $1.1 billion of the $4.54 trillion offered will go to the company, it is clear that the market is desperately looking for an alternative to Nvidia.

That is perhaps why the Jenson Huang-led stock faced pressure in trade on Tuesday after reports emerged about Meta possibly striking a deal with Google over its TPus.