Chinese AI chipmaker Enflame jumps over 200% on market debut
What's the story
Chinese semiconductor company Enflame has witnessed a whopping 206% surge in its stock price after making its debut in Shanghai. The company, which is backed by tech giant Tencent, is one of China's "four little dragons" of AI chipmaking. It plans to use the proceeds from its initial public offering (IPO) to develop and commercialize next-generation AI chips.
Market response
Enflame joins other AI chipmakers in soaring stock prices
Enflame's initial retail offering witnessed an unprecedented response, with orders exceeding the available shares by over 6,000 times.
The company is now the last of China's "four little dragons" of AI chipmaking to go public.
The other three companies in this group, MetaX, Moore Threads, and Biren, also saw their stocks soar on listing day and have remained high since then.
Market trends
Investors bet on domestic AI chipmakers to replace NVIDIA
Investors are betting on the potential of domestic AI chipmakers to replace NVIDIA in China.
According to IDC data cited in Enflame's prospectus, international chipmakers led by NVIDIA accounted for nearly 60% of China's AI accelerator market in 2025.
However, US export controls have shuttered NVIDIA's exports in China's data center compute market, and Beijing's lukewarm interest in importing advanced chips as it pursues tech self-sufficiency.
Industry growth
Goldman Sachs predicts $82B semiconductor capital spending by 2030
Goldman Sachs has reported that the growing foundation models and AI applications in China are driving development across AI chips, foundries, memory, and advanced packaging.
The analysts expect China's semiconductor capital spending to reach $82 billion by 2030.
This is expected to be driven by capacity expansion in memory and advanced nodes amid a growing generative AI trend.
Financial outlook
Enflame's plans to develop next-gen AI chips
Founded in 2018, Enflame is developing AI processors as China seeks to ramp up model building amid major capability gains from domestic developers.
The company reported revenue of 990 million yuan ($147 million) in 2025, up from 722 million yuan a year earlier. However, it has yet to turn a profit.
Enflame plans to use the IPO proceeds for developing its fifth- and sixth-generation AI chips, hoping to match high-end products from international rivals.