Chinese company challenges the dominance of American tech giant Nvidia.

Shares of MetaX, a manufacturer of high-end chips that power artificial intelligence (AI) systems, surged more than 750% in its first trading session in Shanghai, China, on December 17.

This surge is driven by expectations of China's potential to challenge the dominance of American tech giant Nvidia.

MetaX Integrated Circuits' surge comes less than two weeks after another Chinese chipmaker, Moore Threads, recorded a 425% increase following its $1.1 billion initial public offering (IPO). Both companies specialize in manufacturing advanced graphics processing units (GPUs) used to power and train AI tools.

During its IPO, which raised $585.8 million, MetaX shares were priced at 104.66 yuan per share ($14.86 per share). However, during the initial trading session, the stock briefly touched 895 yuan (a 755% increase) before falling slightly to 730.34 yuan per share.

Although the global GPU market is dominated by Nvidia, currently the world's most valuable company thanks to the AI craze, analysts believe investors are placing a big bet on the prospect of the Chinese chip industry accelerating to compete with its American rival.

The race for AI dominance between China and the US is intensifying. China is reportedly encouraging domestic technology companies to use domestically produced chips due to US export restrictions on Nvidia's high-end chip models.

However, last week, US President Donald Trump announced that he had reached an agreement with Chinese President Xi Jinping, allowing Nvidia to export its advanced H200 chip line to the country. This move marks a shift from the export controls imposed under his predecessor Joe Biden since 2022 due to national security concerns.

Even so, the H200 chip still lags behind Nvidia's most advanced products by about 18 months, and the more cutting-edge chips remain on the export ban list to China.

Rui Ma, founder of Tech Buzz China, argues that export controls have inadvertently created a "protected market" for chip manufacturers in China.

(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/cong-ty-trung-quoc-thach-thuc-vi-the-cua-ga-khong-lo-cong-nghe-my-nvidia-post1083633.vnp