The AI chip sector has seen a flurry of major developments recently. Moore Threads and Muxi Holdings have set new records for IPO gains, and now another domestic GPU company is poised to enter the capital markets. Overseas, tech giants like Google and Amazon are also making significant moves.
Biren Technology Clears HKEX Hearing According to the latest disclosures from the Hong Kong Stock Exchange (HKEX), Biren Technology, one of China's "four GPU leaders," has officially passed its HKEX hearing. China International Capital Corporation (CICC), Ping An Securities (Hong Kong), and BOCI are acting as joint sponsors. The company is expected to become the "first domestic GPU stock listed in Hong Kong."
Biren Technology plans to issue up to 372 million overseas-listed ordinary shares on the HKEX. Additionally, 57 shareholders intend to convert 873 million domestically unlisted shares into overseas-listed shares for trading on the HKEX.
Founded in 2019, Biren Technology specializes in developing general-purpose graphics processing unit (GPGPU) chips and intelligent computing solutions based on GPGPUs, providing foundational computing power for AI. Its products are already deployed in key industries such as AI data centers, telecommunications, AI solutions, energy and utilities, fintech, and the internet, with large-scale deployments across multiple intelligent computing clusters in China.
Post-hearing documents reveal that Biren Technology focuses on delivering comprehensive intelligent computing solutions and has demonstrated strong growth momentum since achieving commercialization. From 2022 to 2024, the company's revenue grew from RMB 499,000 to RMB 337 million, with gross margins of 100%, 76.4%, and 53.2%, respectively.
As of December 15, Biren Technology has signed five framework sales agreements and 24 sales contracts worth approximately RMB 1.241 billion. Notably, beyond its existing product portfolio, the company plans to launch its next-generation flagship data center chip series, the Biren 20X, for cloud training and inference, expected to commercialize in 2026.
Industry experts suggest that with the financing support and listing status in Hong Kong, Biren Technology is well-positioned to solidify its long-term development foundation, enhance competitiveness, and shape a new landscape for the GPU industry.
AI Chip Competition Intensifies Sources indicate that Google is advancing a new initiative, codenamed "TorchTPU," to optimize its AI chips for PyTorch, the world's most popular AI development framework. This move aims to challenge Nvidia's long-standing dominance in the AI chip market.
The project seeks to eliminate a key barrier to TPU adoption by ensuring seamless compatibility and developer-friendly experiences for PyTorch users, potentially including open-sourcing parts of the software to accelerate adoption.
Meanwhile, reports suggest Amazon is in talks to invest at least $10 billion in OpenAI, which would push the AI startup's valuation beyond $500 billion. Discussions also include e-commerce collaboration opportunities, with OpenAI exploring monetizing ChatGPT as a shopping platform by earning commissions from retailer referrals. A critical part of the proposed deal involves OpenAI adopting Amazon's in-house Trainium AI chips.
Donghai Securities notes that AI investments continue to exceed expectations, with memory chip price hikes surpassing forecasts. Despite overseas pressures, domestic self-sufficiency efforts are intensifying, and market liquidity remains high, suggesting opportunities for strategic investments.
Jianghai Securities highlights that AI chips, as the cornerstone of computing power, directly determine the capabilities of AI models and future economic landscapes. Driven by sustained AI infrastructure investments and the growing importance of self-reliance, domestic AI chips are expected to see substantial market expansion.
Five Stocks Under Institutional Spotlight According to East Money's thematic sectors, beyond recent IPOs like Muxi Holdings and Moore Threads, 36 A-share stocks are tied to the AI chip concept, with a combined market cap of approximately RMB 1.9 trillion. Nearly 90% of these stocks have risen this year, led by Hesheng New Materials with a 143.63% gain, followed by Cambricon Technologies (up ~100%), and 11 others, including Suanjo Information, Montage Technology, and Fudan Microelectronics, posting gains exceeding 50%.
Financially, nearly 70% of AI chip concept stocks reported growth/improvement in Q1-Q3 2024, with Urovo Technology, Yanshan Technology, and Cambricon Technologies leading in net profit growth.
As a hallmark of hard tech, AI chip stocks are widely tracked by institutions. East Money Choice data shows that since Q4, 14 stocks have attracted over 20 institutional surveys each. Montage Technology tops the list with 351 surveys, followed by Loongson Technology (244 surveys), and Allwinner Technology, Telink Semiconductor, and TCL Technology, each with over 100 surveys.
Montage Technology reported Q1-Q3 revenue of RMB 4.058 billion (+57.83% YoY) and net profit of RMB 1.632 billion (+66.89% YoY). BOCI Research notes the company's improving operations, sustained memory segment momentum, and diversified product lines as key growth drivers.
Allwinner Technology shipped over 14 million self-developed edge AI computing chips (+150% YoY), nearly 7 million 6nm chips (projected to hit 10 million annually), and over 13 million W-series chips (+70% YoY). Soochow Securities highlights continued potential in multimedia smart terminal chips, with Wi-Fi and automotive chips poised to unlock secondary growth.
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