Enflame, a Chinese AI chip developer supported by Tencent, saw its stock price rise by more than 200% during its Shanghai trading debut on Friday. The company set its initial issue price at ¥142.18, with shares reaching a peak of ¥475, representing a 234% increase over the offer price. The retail offering was highly oversubscribed, drawing orders for more than 6,000 times the available shares.
The listing of Enflame completes the public debut cycle for four major domestic AI chip startups in China. Other industry peers, including MetaX, Moore Threads, and Biren, also experienced significant surges upon listing, though their stock prices have since declined. For instance, Moore Threads and MetaX have seen their values drop by approximately 42% and 35% respectively from their initial debut levels.
Enflame reported revenue of ¥990 million for 2025, an increase from ¥722 million in the previous year. The company remains unprofitable but plans to use the proceeds from its IPO to fund the development of its fifth- and sixth-generation processors. These new chips are intended to compete with high-end international alternatives, as domestic silicon begins to support real-world AI workloads.
Despite the growth of local suppliers, international manufacturers led by Nvidia maintained nearly 60% of China’s AI accelerator market in 2025. While US export controls have restricted Nvidia's shipments to the region, Goldman Sachs projects that China’s total semiconductor capital spending will reach $82 billion by 2030.
