Alice Han

But more on that in just a moment.

All right, let's get right into it, James.

China's chip race just opened up a new front, MoreThreads, a startup founded by a former Nvidia executive in China, exploded more than 400% on its first trading day in Shanghai, raising over a billion dollars and instantly becoming Beijing's latest chip champion in its push to build a homegrown alternative to Nvidia.

The company isn't profitable yet.

It's under U.S.

sanctions, and it's still nowhere near the cutting edge relative to, say, Taiwan or the States.

But its monster IPO signals something larger.

China is pouring unprecedented capital and political muscle into manufacturing graphic processing units, or GPUs, hoping to close the gap and secure another pillar of technological independence.

James, beyond this name being great, more threads, what strikes me as being fascinating is the fact that you have such a huge gain on its first trading day.

I looked it up relative to, say, NVIDIA or even SMIC, and this is orders of magnitude larger.

SMIC opened 64% on its IPO day stock surge.

Cambricorn was 230%.

This is 425%.

Now, we can talk about whether or not it's overvalued, but what is clear is that there's a ton of enthusiasm on the mainland for Chinese chip makers.

This is something that we flagged in the past.

But what's your take very, very quickly on whether or not this is an overvalued stock and why we've seen so much frenzy for this new entrant into the domain that is really trying to be the Nvidia of China?

Yeah, I think it's too early to say.

And just some details about this to your point, James.

They've really expedited the IPO for this company.

They obtained the IPO approval from the Shanghai Stock Exchange in 88 days, and that's a record in SSE history.