Executive Summary
– 沐曦股份 (Muxi Co., Ltd.), hailed as China’s ‘second domestic GPU stock,’ made a blockbuster debut on the 科创板 (STAR Market) on December 17, with shares skyrocketing 568% at open.
– The IPO priced at 104.66 yuan per share led to single-lot profits approaching 300,000 yuan, showcasing explosive retail and institutional demand.
– With a post-IPO market cap of 280.1 billion yuan, Muxi’s valuation reflects high growth expectations for domestic high-performance GPU solutions in AI and computing.
– The company plans to utilize 4.197 billion yuan in net proceeds to accelerate R&D in general-purpose and AI-specific GPUs, supporting China’s tech self-reliance goals.
– This event underscores the Shanghai STAR Market’s pivotal role in funding strategic innovation and signals sustained investor appetite for Chinese semiconductor equities.
A New Chapter for China’s Chip Ambitions
The Chinese equity markets have once again etched a milestone into their annals, as 沐曦股份 (Muxi Co., Ltd.) – the much-anticipated ‘second domestic GPU stock’ – stormed onto the 科创板 (STAR Market) with a debut that left investors and analysts alike in awe. On December 17, shares of the GPU designer and manufacturer opened at 700 yuan, a staggering 568% premium to its initial public offering price of 104.66 yuan. This surge not only propelled Muxi’s total market capitalization to 280.1 billion yuan (approximately $39.5 billion) but also delivered paper profits of nearly 300,000 yuan per lot for fortunate allotment holders. In a landscape where technological sovereignty is paramount, Muxi’s listing is more than a financial spectacle; it is a testament to China’s accelerating push to cultivate homegrown champions in critical semiconductor domains, particularly high-performance graphics processing units (GPUs) essential for artificial intelligence, scientific computing, and next-generation graphics.
The IPO Breakdown: Record Numbers and Market Frenzy
Muxi’s journey to the public markets was characterized by extraordinary investor enthusiasm, translating into quantitative metrics that underscore the market’s hunger for innovative tech plays.
Pricing, Valuation, and the Subscription Overhaul
The company set its IPO price at 104.66 yuan per share, which translated to a post-issue market capitalization of 41.874 billion yuan. Notably, this price implied a trailing price-to-sales (P/S) ratio of 56.35 times on a diluted basis for 2024, which the prospectus indicated was below the average of comparable listed peers in the semiconductor sector. This relative discount, whether perceived or real, likely fueled the subscription frenzy. The public offering comprised 40.10 million new shares, representing 10.02% of the total post-IPO share capital of approximately 400 million shares. Demand was astronomical: the online retail portion was oversubscribed by nearly 4,500 times, triggering the 回拨机制 (clawback mechanism) as per 科创板 (STAR Market) rules. This mechanism reallocated shares from the institutional (网下) to the retail (网上) tranche. After the adjustment, the final allocation stood at 22.8291 million shares (70.26%) for institutional investors and 9.6655 million shares (29.74%) for retail participants. Additionally, 7.6054 million shares (18.97% of the total offering) were placed via 战略配售 (strategic placement) to long-term investors and partners, a common feature for key tech listings aimed at ensuring stable shareholder base.
Capital Raised and Strategic Allocation
Gross proceeds from the IPO amounted to 4.197 billion yuan. After deducting issuance expenses of 298 million yuan (excluding value-added tax), the net proceeds totaled 3.899 billion yuan. According to the 发售公告 (offering announcement), these funds are earmarked for three core R&D and industrialization projects:
– 新型高性能通用GPU研发及产业化项目 (New High-Performance General-Purpose GPU R&D and Industrialization Project)
– 新一代人工智能推理GPU研发及产业化项目 (Next-Generation AI Inference GPU R&D and Industrialization Project)
– 面向前沿领域及新兴应用场景的高性能GPU技术研发项目 (High-Performance GPU Technology R&D Project for Cutting-Edge Fields and Emerging Application Scenarios)
This focused capital deployment highlights Muxi’s ambition to not only compete in existing markets but also to pioneer solutions for future compute-intensive applications.
Muxi’s Market Position: Building a Domestic GPU Powerhouse
沐曦股份 (Muxi Co., Ltd.) positions itself as a leading domestic enterprise dedicated to the independent research and development of full-stack high-performance GPU chips and computing platforms. Its mission is to provide high-efficiency, high-generality computing power for frontier fields such as artificial intelligence computing, general-purpose computing, and graphics rendering.
A Comprehensive Product Matrix Taking Shape
The company has systematically developed a product portfolio that spans the three critical directions of modern GPU utility. Its 曦思N系列 (Xisi N-Series) GPUs target AI inference scenarios, offering optimized performance for deploying trained models. The 曦云C系列 (Xiyun C-Series) is designed for training-inference integration and general-purpose computing, catering to data centers and high-performance computing (HPC) environments. On the horizon is the 曦彩G系列 (Xicai G-Series), currently under development, which will venture into the graphics rendering domain, a market long dominated by international giants like NVIDIA and AMD. This tripartite strategy allows Muxi to address a broad swath of the compute spectrum, from cloud AI servers to potential future applications in gaming, professional visualization, and the metaverse. As the ‘second domestic GPU stock,’ following in the footsteps of predecessors like 景嘉微 (Jingjia Micro), Muxi’s expansive approach signifies the maturation of China’s GPU design capabilities.
The Competitive Landscape and National Strategy
Muxi’s rise occurs within a broader context of China’s determined efforts to achieve self-sufficiency in semiconductors, a sector deemed critical for economic security and technological leadership. The U.S.-China tech rivalry and export controls have accelerated investment into domestic alternatives across the chip supply chain. GPUs, being the workhorses of AI and advanced computing, are a focal point. Companies like 华为海思 (HiSilicon), 壁仞科技 (Biren Technology), and 摩尔线程 (Moore Threads) are also vying for position. Muxi’s successful IPO, backed by state-guided funds and private capital, demonstrates the financial market’s role in fueling this strategic ambition. The 科创板 (STAR Market), with its tolerance for pre-profitability and emphasis on ‘hard tech,’ has become the listing venue of choice for such enterprises. Muxi, despite not yet being profitable, was admitted to the 科创成长层 (STAR Market Growth Tier) upon listing, reflecting the exchange’s confidence in its long-term growth trajectory.
Investor Implications: Decoding the Frenzy and Future Risks
The market’s reaction to Muxi’s IPO offers several key takeaways for global investors monitoring Chinese equities.
Valuation Stretch and Sustainability Concerns
A nearly 568% first-day pop and a market cap exceeding 280 billion yuan for a company yet to turn a profit inevitably raise questions about valuation sustainability. The astronomical oversubscription rate points to a supply-demand imbalance in the IPO market for coveted tech themes, potentially inflating short-term prices. Investors must differentiate between speculative momentum and fundamental value. While the trailing P/S ratio at issuance was below peers, the post-surge valuation multiples are exceedingly high, demanding extraordinary future growth to justify. Analysts will closely watch Muxi’s revenue growth, R&D milestone achievements, and path to profitability in upcoming quarterly reports. The performance of other ‘domestic GPU stocks’ and semiconductor IPOs will also serve as important benchmarks.
Portfolio Considerations and Sector Exposure
For institutional and sophisticated investors, Muxi’s debut reinforces the investment narrative around China’s semiconductor indigenization. It highlights the 科创板 (STAR Market) as a fertile ground for high-growth, high-risk tech investments. Allocating to this segment requires a nuanced understanding of technology roadmaps, regulatory support, and competitive dynamics. The sheer profit per lot—nearly 300,000 yuan—may attract more retail speculation into similar upcoming IPOs, increasing market volatility. Prudent investors might consider a balanced approach, gaining exposure not just through direct stock picks but also via thematic ETFs or funds focused on Chinese technology and innovation, thereby mitigating single-stock risk while participating in the sector’s growth.
Regulatory and Macroeconomic Backdrop: Fueling Innovation
The success of Muxi’s IPO is inextricably linked to supportive policies and economic priorities set by Chinese authorities.
The STAR Market as a Catalyst
Launched in 2019, the 科创板 (STAR Market) was explicitly created to support companies in strategic sectors like semiconductors, biotechnology, and new energy. Its registration-based IPO system, acceptance of weighted voting rights structures, and lack of profitability requirements for listings have made it a magnet for tech firms. Muxi’s listing is a poster child for this policy success. Data from the 上海证券交易所 (Shanghai Stock Exchange) shows that the STAR Market has raised hundreds of billions of yuan for tech companies since inception, becoming a critical component of China’s direct financing system for innovation.
Alignment with National Tech Goals
Muxi’s R&D focus dovetails perfectly with initiatives outlined in China’s 14th Five-Year Plan and the ‘Made in China 2025’ strategy, which emphasize breakthroughs in core technologies including integrated circuits (ICs). Government guidance funds, tax incentives, and procurement preferences all create a favorable environment for domestic GPU developers. However, investors must remain cognizant of regulatory shifts, such as tightening scrutiny on IPO pricing or changes in semiconductor industry support policies, which could affect future listings and valuations.
Looking Ahead: Trajectory for Muxi and the Domestic GPU Sector
The road forward for Muxi is paved with both immense opportunity and significant challenges.
Growth Drivers: AI, Computing, and Beyond
The global insatiable demand for computing power, driven by the AI boom, cloud expansion, and digital transformation, provides a vast addressable market. If Muxi can successfully commercialize its 曦云C系列 (Xiyun C-Series) for data centers and its 曦思N系列 (Xisi N-Series) for AI inference, it could capture meaningful share in China’s domestic server GPU market, which is projected to grow rapidly. The eventual launch of its graphics-oriented 曦彩G系列 (Xicai G-Series) could open entirely new revenue streams. Partnerships with major Chinese cloud providers like 阿里巴巴云 (Alibaba Cloud), 腾讯云 (Tencent Cloud), and 百度云 (Baidu Cloud) will be crucial for design wins and scale.
Key Challenges and Risk Factors
Despite the optimistic debut, Muxi faces formidable hurdles. The technical complexity of designing competitive, high-performance GPUs is extreme, and the company is competing with established giants with decades of experience and vast ecosystems. Achieving competitive performance per watt and software stack maturity (e.g., drivers, developer tools) will take time and sustained R&D investment. Furthermore, the global semiconductor cycle, potential supply chain disruptions for advanced manufacturing nodes (though Muxi is a fabless designer), and intensifying competition within China itself are persistent risks. The company’s pre-profit status means it will likely continue to report losses in the near term, testing investor patience during market downturns.
Synthesizing the Muxi Moment for Global Investors
The spectacular debut of 沐曦股份 (Muxi Co., Ltd.) as China’s ‘second domestic GPU stock’ is a multifaceted event with deep implications. It underscores the vibrant appetite for high-tech investments in Chinese markets, the strategic importance of semiconductor self-reliance, and the catalytic role of the STAR Market. For investors, the astronomical first-day gains serve as a reminder of the potent mix of speculation and strategic conviction driving certain sectors. While the valuation after the surge appears rich, Muxi’s long-term story is tied to its execution on R&D milestones, product commercialization, and the broader success of China’s GPU ecosystem.
Moving forward, market participants should monitor Muxi’s quarterly financials and operational updates closely, assess the competitive moves of both domestic peers and international incumbents, and stay attuned to policy developments from bodies like the 中国证监会 (China Securities Regulatory Commission, CSRC) and the 工业和信息化部 (Ministry of Industry and Information Technology, MIIT). The call to action for sophisticated investors is clear: engage with the Chinese semiconductor narrative through diligent research, maintain a balanced portfolio approach to manage volatility, and consider the Muxi IPO not as an isolated event but as a significant data point in the ongoing reconfiguration of global tech supply chains. The journey of the ‘second domestic GPU stock’ has just begun, and its path will offer critical insights into the future of innovation and investment in China’s equity markets.