Executive Summary: Key Takeaways from Muxi’s Market Debut
- Muxi Stock (沐曦股份) opened at 700 yuan per share, a 568.83% surge from its 104.66 yuan IPO price, generating per-lot profits of nearly 300,000 yuan for retail investors.
- Early backer, private equity titan Ge Weidong (葛卫东) and his Chaos Investment, holds a 6.73% stake worth 18.86 billion yuan at open, with paper profits likely exceeding 10 billion yuan.
- As a domestic GPU leader, Muxi focuses on AI training, inference, and graphics rendering, with its first fully domestic GPU, the Xiyun C600, set for risk production by end-2025.
- The company remains unprofitable but forecasts 2025 revenue growth of 101.86% to 166.46%, targeting breakeven by 2026 amid robust AI demand.
- This explosive debut reflects a resurgent IPO market in China, with December’s average first-day gain at 268.6%, fueled by investor optimism in tech and semiconductors.
The Blockbuster IPO: Muxi Stock’s Explosive Debut
The Shanghai STAR Market witnessed a seismic event as Muxi Stock (沐曦股份), often dubbed China’s second domestic GPU stock, began trading. Shares skyrocketed 568.83% at the opening bell, hitting 700 yuan per share and catapulting the company’s market capitalization to 280.1 billion yuan. This staggering rise translated into immense immediate gains for lucky subscribers, with each lot of 500 shares yielding a paper profit of approximately 297,670 yuan. Muxi Stock’s explosive debut instantly positioned it as a contender for the year’s most profitable initial public offering, overshadowing recent high-flyers and capturing global investor attention.
Opening Surge and Immediate Market Impact
Driven by frenzied demand, the IPO priced at 104.66 yuan per share, raising 4.197 billion yuan through the issuance of 40.1 million shares. Huatai United Securities acted as the sole sponsor and lead underwriter. The scarcity of shares amplified the frenzy; the online subscription final winning ratio was a mere 0.03348913%, making it even harder to secure than peer Moore Threads (摩尔线程), which had a ratio of 0.03635054%. Under STAR Market rules, Muxi faces no price limits for its first five trading days and is immediately eligible for margin trading. However, the company cautioned investors about limited liquidity risks, as only 18.14 million shares, or 4.53% of the total, are freely tradable initially.
Comparison with GPU Peer Moore Threads
Muxi Stock’s explosive debut draws direct parallels with Moore Threads, which listed earlier in December and saw a 425.46% first-day gain. At its peak, Moore Threads offered per-lot profits exceeding 280,000 yuan, setting a record under China’s full registration-based IPO system. This back-to-back success of GPU firms underscores a powerful trend: investors are aggressively betting on China’s semiconductor self-sufficiency, particularly in critical areas like graphics processing for artificial intelligence. The performance of these stocks signals strong confidence in domestic technological capabilities despite geopolitical tensions and export controls.
Behind the Scenes: Muxi’s Technology and Market Position
Founded in September 2020, Muxi has rapidly emerged as a flagship in China’s quest for high-performance general-purpose GPU independence. The company dedicates itself to full-stack in-house development of GPU chips and computing platforms, targeting three core domains: AI training and inference, general-purpose computing, and graphics rendering. Its product lineup is strategically segmented into the Xisi N-series for AI inference, Xiyun C-series for training and computing, and Xicai G-series for graphics. Muxi Stock’s explosive debut is fundamentally rooted in this technological promise and the strategic imperative to reduce reliance on foreign giants like Nvidia.
GPU Product Portfolio and Roadmap
The centerpiece of Muxi’s near-term strategy is the Xiyun C600, its first fully domestic GPU utilizing an entirely Chinese supply chain from design to packaging and testing. Performance is estimated between Nvidia’s A100 and H100, with risk production slated for late 2025 and full mass production in the first half of 2026. The next-generation Xiyun C700 series, also based on domestic供应链 (supply chain), aims to significantly boost computing power, memory, connectivity, and energy efficiency, with comprehensive performance targeting Nvidia’s H100. A流片 (tape-out) is expected in the second half of 2026. This roadmap demonstrates Muxi’s commitment to closing the technological gap, a key driver behind investor enthusiasm.
Financial Performance and Path to Profitability
Despite the market euphoria, Muxi remains in the red, a common stage for capital-intensive semiconductor startups. Financials show revenue grew from 42,640 yuan in 2022 to 743.07 million yuan in 2024, with a surge to 320.42 million yuan just in the first quarter of 2025. Net losses attributable to shareholders have widened, from -777 million yuan in 2022 to -1.409 billion yuan in 2024, with a -233 million yuan loss in Q1 2025. The company’s financial controller and board secretary, Wei Zhongwei, projects 2025 revenue between 1.5 billion and 1.98 billion yuan, representing growth of 101.86% to 166.46% year-on-year. Losses are expected to narrow to between -527 million and -763 million yuan. Management targets reaching breakeven as early as 2026, contingent on successful product launches and soaring AI-driven demand.
The Big Winners: Early Investors and Their Stakes
The astronomical gains from Muxi Stock’s explosive debut were not limited to retail lottery winners. A cadre of sophisticated institutional and individual investors positioned themselves early, reaping paper profits measured in billions. The most notable beneficiary is private investment legend Ge Weidong (葛卫东), who, along with his firm Chaos Investment, aggressively accumulated shares through direct holdings and multiple capital increases starting in early 2025. Their pre-IPO stake totals 26.9379 million shares, representing 6.73% of the post-issue capital. At the opening price of 700 yuan, this stake was valued at 18.858 billion yuan, implying an unrealized gain likely surpassing 10 billion yuan from their entry points.
Ge Weidong and Chaos Investment’s Massive Bet
Ge Weidong (葛卫东), renowned for his contrarian bets in commodities and technology, demonstrated prescient timing with Muxi. His involvement signals strong insider confidence in the company’s execution capability and market potential. Such high-profile backing often serves as a validation signal for other institutional investors, reducing perceived risk and attracting further capital. The scale of his paper profit highlights the transformative wealth-creation potential in China’s strategic tech sectors for those with access to pre-IPO rounds.
Institutional Backers and Funding Rounds
Before listing, Muxi completed 13 funding rounds, raising a cumulative 12.64 billion yuan from over a hundred institutions. The shareholder registry reads like a who’s who of Chinese and global investment powerhouses, including:
– The National Structural Adjustment Fund (国调基金)
– Shanghai Science and Technology Innovation Fund (上海科创基金)
– Sequoia Capital China (红杉中国)
– Matrix Partners (经纬创投)
– Harvest Capital (和利资本)
This diverse and deep bench of supporters provided not just capital but also strategic networks and industry expertise, crucial for navigating supply chain challenges and customer acquisition in a competitive landscape.
Market Context: The Resurgence of China’s IPO Scene
Muxi Stock’s explosive debut is not an isolated phenomenon but part of a broader revitalization of China’s IPO market, particularly on the tech-heavy STAR Market and ChiNext. Investor appetite for new listings has strengthened markedly, driven by regulatory support, ample liquidity, and a search for growth in transformative industries like semiconductors, AI, and新能源 (new energy). December has emerged as a particularly active month, with the average first-day gain for the five new listings so far standing at 268.6%, ranking third-highest in 2024 behind November (327.6%) and July (280.4%).
Recent IPO Performances and Trends
A look at December’s cohort reveals widespread strength:
– Moore Threads (摩尔线程): +425.46%
– Jingchuang Electric (精创电气): +330.74%
– China Uranium Industry (中国铀业): +280.04%
– OnMicro (昂瑞微): +160.11%
– BioAtla (百奥赛图): +146.63%
According to Wind data, the average per-lot profit for new listings in Q4 2024 (excluding Beijing Exchange stocks), calculated using first-day highs, has exceeded 40,000 yuan, significantly above the averages for the first three quarters. Moore Threads briefly held the title for the highest single-lot profit of 2024 at over 286,900 yuan, a record now potentially challenged by Muxi. This trend indicates robust risk appetite and a preference for high-growth, high-tech narratives among both institutional and retail participants.
Regulatory Environment and Investor Sentiment
The strong performance aligns with a generally supportive regulatory stance from bodies like the China Securities Regulatory Commission (CSRC) (中国证监会), which has streamlined listing processes under the registration-based system to channel capital into strategic sectors. Policies emphasizing科技自立自强 (self-reliance and strength in science and technology) have made semiconductor and AI companies prime candidates for public market funding. Investor sentiment is further buoyed by expectations of monetary easing and targeted fiscal stimulus to bolster the economy, creating a conducive environment for high-valuation listings.
Risks and Considerations for Investors
While Muxi Stock’s explosive debut paints a picture of runaway success, prudent investors must weigh significant risks. The stock’s stratospheric rise on a thin float invites extreme volatility, and the absence of price limits in the initial days can lead to sharp corrections. The company itself warned of liquidity risks in its prospectus. Furthermore, the valuation at over 280 billion yuan for a company yet to turn a profit incorporates extraordinarily high growth expectations, leaving little margin for execution missteps.
Liquidity Concerns and Trading Volatility
With only 4.53% of shares freely tradable initially, the stock is susceptible to large price swings driven by relatively small volumes. This illiquidity can exacerbate both upside and downside moves, making it challenging for large institutions to establish or exit positions without impacting the price. Investors should brace for heightened volatility in the coming weeks as the lock-up periods for pre-IPO shareholders gradually expire, potentially increasing sell-side pressure.
Competitive Landscape and Technological Hurdles
Muxi operates in a fiercely competitive arena. It contends not only with global behemoth Nvidia but also with domestic rivals like Moore Threads, Biren Technology, and others vying for a share of China’s AI chip market. Success hinges on flawless execution of its product roadmap, achieving yield and performance targets in mass production, and securing design wins with major cloud and enterprise customers. Any delays in the Xiyun C600量产 (mass production) or shortfalls in performance could severely dent confidence. Additionally, the company remains dependent on a still-maturing domestic semiconductor supply chain, which faces its own challenges in advanced process nodes and equipment access.
Future Outlook: What’s Next for Muxi and the GPU Sector?
The journey for Muxi Stock is just beginning. Its market debut represents a major milestone, but the true test lies in translating technological promise into commercial success and sustainable profitability. The company’s ability to execute on its production timelines, secure large-scale customer adoptions, and navigate the complex geopolitics of semiconductors will determine its long-term trajectory. For the broader sector, Muxi Stock’s explosive debut serves as a potent catalyst, likely accelerating investment and innovation in China’s domestic GPU ecosystem.
Production Timelines and Market Expansion
All eyes are on the risk production phase of the Xiyun C600 by year-end. Successful validation will be a critical de-risking event. The company aims to capture significant份额 (market share) in domestic AI training clusters, data centers, and potentially automotive and professional visualization markets. Partnerships with state-owned enterprises, cloud service providers like Alibaba Cloud (阿里云) or Tencent Cloud (腾讯云), and AI software firms will be key to driving adoption. Investors should monitor quarterly updates on order books, shipment volumes, and average selling prices for signs of commercial traction.
Implications for China’s Semiconductor Independence
Muxi’s progress is emblematic of China’s broader strategic push to build a self-sufficient semiconductor industry. Each successful product launch from companies like Muxi reduces dependency on foreign suppliers and strengthens national resilience in critical technology. This trend has profound implications for global supply chains and tech competition. For international investors, it presents both opportunities in a fast-growing market and risks related to policy shifts and trade tensions. Engaging with this sector requires a nuanced understanding of industrial policy, technological benchmarks, and geopolitical crosscurrents.
Synthesizing the Muxi Phenomenon
Muxi Stock’s landing on the STAR Market has been nothing short of spectacular, delivering windfall gains and spotlighting the intense investor fervor for China’s homegrown tech champions. The debut underscores several key themes: the premium placed on semiconductor self-reliance, the vibrant state of China’s IPO market for strategic sectors, and the vast wealth-creation potential for early-stage backers in deep-tech ventures. While the road ahead is fraught with execution risks and competitive pressures, Muxi’s strong backing, clear roadmap, and alignment with national priorities position it as a bellwether for the domestic GPU industry.
For market participants, the call to action is clear. Institutional investors should conduct thorough due diligence on Muxi’s technological progress versus its lofty valuation, considering both the enormous upside and the significant risks. Retail investors might view such stocks as high-risk, high-reward propositions best approached with caution and limited position sizing. All stakeholders should stay informed by tracking company announcements, industry reports from firms like CICC (中金公司), and regulatory updates from the SSE (Shanghai Stock Exchange). The story of Muxi is still being written, and its next chapters will offer critical insights into the viability and velocity of China’s climb up the semiconductor value chain.