Enflame Technology Surges Over 220% in Shanghai IPO as Investors Back Domestic AI Chip Development
Chinese artificial intelligence chipmaker Enflame Technology surged over 223% on its debut at the Shanghai Stock Exchange after raising $912 million through an initial public offering. The Tencent-backed company opened at RMB 410 and reached a high of RMB 460, reflecting strong investor confidence in domestic alternatives to global leaders like Nvidia. Enflame is one of China's leading AI chipmakers and the last among its peers to go public. Investors are betting that homegrown firms can challenge international players such as Nvidia, which held nearly 60% of China’s AI accelerator market in 2025. U.S. export controls have limited access for foreign companies like Nvidia into China's data center compute sector. Despite rising revenue to RMB 990 million ($147.62 million) in 2025, Enflame remains unprofitable and plans to use IPO proceeds to develop next-generation AI chips that can rival high-end international products.
Topics: AI chips China market IPO performance Nvidia competition