Chinese artificial intelligence chipmaker Enflame Technology soared more than 223% in its Shanghai debut on Friday after raising 6.12 billion yuan ($912 million) in its initial public offering.
A Strong Debut
The Tencent Holdings Ltd. (OTC:TCEHY) backed chipmaker opened at RMB 410 ($61.13) and rose to as high as RMB 460 ($68.59), according to the Shanghai Stock Exchange.
Enflame is considered one of China’s “four little dragons” of AI chipmaking and is the last of that group to go public, following MetaX‘s and Moore Threads‘ debut last year and Biren Tehcnology‘s listing in January.
The Nvidia Rival
Investors are betting that domestic chipmakers can chip away at Nvidia Corp. (NASDAQ:NVDA) ‘s dominance in China, where Nvidia-led international players controlled nearly 60% of the country’s AI accelerator market in 2025, CNBC reported citing IDC data from Enflame’s prospectus.
U.S. export controls have limited Nvidia’s access to China’s data center compute market as Beijing and Washington race to lead in AI dominance.
Revenue Rising, Losses Persist
Founded in 2018, Enflame posted revenue of RMB 990 million ($147.62 million) in 2025, up from RMB 722 million (7.54 million) the previous year, though it has yet to turn a profit.
Enflame said it will use the IPO proceeds to develop and commercialize its fifth- and sixth-generation AI chips, aiming to match the performance of high-end products from international rivals, according to CNBC.
China’s STAR Market fell 1.70% on Friday, while the CSI 300 Index fell 1.59%.
Price Action: At the time of writing, the stock was trading 176% higher at RMB 396.16 ($59.07)
According to Benzinga Edge Rankings, Tencent’s stock has a Momentum score in the 76th percentile and a negative price trend across the short, medium, and long term.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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