China’s AI chip stocks face crucial test as MetaX lock-up period expires
China is bracing for a potential massive sell-off of a high-profile artificial intelligence chip stock on Thursday, when a lock-up period affecting 14 million shares in MetaX Integrated Circuits is set to expire. Analysts expect MetaX to face “significant selling pressure” when the restricted shares are released for trading, after the expiry of a similar lock-up period for shares in fellow AI…
China anticipates a significant market impact on Thursday as the lock-up period for 14 million shares of MetaX Integrated Circuits expires, potentially triggering a massive sell-off of the high-profile AI chip stock. Analysts predict "significant selling pressure" on the MetaX shares following a similar event last week that caused Moore Threads' share price to plummet by 20 percent, leading to a loss of over 30 percent and tens of billions of yuan in market value.
The MetaX stock, valued at an estimated 6.7 billion yuan (US$998 million), may face pressure as early backers look to cash in on their gains. Despite the expected sell-off, MetaX's early institutional investors still enjoy substantial paper gains, with a profit margin of over 350 percent. The Chinese AI chip market, which has attracted considerable investor interest, is seen as crucial for China's efforts to develop domestic alternatives to US graphics processing unit giant Nvidia.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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