Nvidia's Chinese Rival Enflame Soars Over 220% in Shanghai Debut As Investors Bet on Domestic AI Chips

Chinese AI chipmaker Enflame Technology experienced a remarkable 223% surge in its Shanghai debut, raising 6.12 billion yuan ($912 million) through its initial public offering. The company, backed by Tencent Holdings Ltd., opened at RMB 410 ($61.13) and reached a peak of RMB 460 ($68.59) on the Shanghai Stock Exchange. Enflame is one of China's "four little dragons" in AI chip manufacturing, being the final one to go public after MetaX and Moore Threads in 2025 and Biren Technology in January.

Investors are optimistic that domestic chipmakers could challenge Nvidia Corp.'s (NASDAQ:NVDA) dominance in China's AI accelerator market, which was nearly 60% in 2025, according to IDC data quoted by CNBC. Enflame's CEO stated that the company will utilize IPO funds to develop and launch its fifth- and sixth-generation AI chips, with the goal of reaching the performance of international competitors.

Despite turning a profit yet, Enflame reported a revenue increase from RMB 722 million (7.54 million) in 2024 to RMB 990 million ($147.62 million) in 2025. The STAR Market and the CSI 300 Index both declined 1.70% and 1.59%, respectively, on Friday. As of this writing, Enflame's stock had risen 176% to RMB 396.16 ($59.07). According to Benzinga Edge Rankings, Tencent's stock shows a positive momentum score in the 76th percentile but exhibits a negative price trend in the short, medium, and long term horizons.