Enflame Soars Over 200% in Shanghai IPO Debut

Enflame, a Tencent-backed artificial intelligence chip company, saw its Shanghai-listed shares jump more than 200% on their trading debut on Friday. The offering was priced at 142.18 yuan, the stock opened at 410 yuan and climbed as high as 475 yuan.

The initial retail tranche drew orders totaling more than 6,000 times the shares available. Enflame reallocated additional stock toward retail investors ahead of the trading debut.

The listing followed earlier market debuts by domestic AI chip and memory firms. MetaX, Moore Threads and Biren recorded double- and triple-digit gains at their listings; some of those companies have since traded below their debut levels, with Moore Threads about 42% lower and MetaX about 35% below its initial peak.

Enflame reported 990 million yuan in revenue for 2025, up from 722 million yuan the prior year. The company has not yet become profitable. Proceeds from the offering are designated to fund development of fifth- and sixth-generation AI processors that the company says are intended to match high-end international accelerators.

Industry data show international chipmakers led by Nvidia held nearly 60% of China’s AI accelerator market in 2025. U.S. export controls have limited Nvidia’s shipments to China, and Beijing has shown limited appetite for importing the most advanced foreign chips. Domestic silicon has begun to carry production workloads.

As an example, Z.ai reports its GLM-5.3-Flash model runs entirely on China-made chips; analysts estimate the setup uses a mix of Huawei processors together with parts from Enflame and other local suppliers.

Goldman Sachs projects China’s semiconductor capital spending will reach about $82 billion by 2030.