Tencent-backed Enflame triples in Shanghai debut as China AI chip bets surge

Chinese AI chipmaker Shanghai Enflame Technology saw its stock triple in its Shanghai debut on September 11, 2025, after raising 6.12 billion yuan in its initial public offering. The company's shares opened at 410 yuan, far exceeding the offer price of 142.18 yuan, and reached a peak of 475 yuan before falling to around 430 yuan.

China's STAR Market fell more than 2 percent, while the CSI 300 Index dropped 1.43 percent. Enflame's successful IPO comes amid a wave of listings by Chinese firms aiming to provide AI computing chips, as Beijing seeks to develop homegrown alternatives to US suppliers like Nvidia. Shen Meng, director at Beijing-based investment bank Chanson & Co., notes that subscription for new shares in the A-share market remains one of the few investment avenues offering guaranteed returns.

Analysts point out that GPU-related businesses provide clearer growth prospects than some concept stocks with weaker fundamentals, and US restrictions have heightened interest in domestic alternatives. Enflame, part of a group of AI chip startups dubbed the "four little GPU dragons," sold 43.04 million new shares, representing 10 percent of its expanded share capital.

With a market value of about 61.2 billion yuan, the company's shares surged to roughly 185 billion yuan on the debut day, more than tripling its IPO valuation. Tencent, Enflame's largest shareholder at 17.95 percent, was also its biggest customer before the listing, accounting for 83.79 percent of the firm's 2025 revenue. Despite not yet generating profits, Enflame expects to become profitable by 2026 or 2027, depending on revenue growth and margins, as it plans to invest proceeds in developing fifth- and sixth-generation AI chips, related software, and large-scale computing systems.