Enflame stock jumps 206% in Shanghai debut as China pushes domestic AI chips

Chinese AI chipmaker Enflame surged 206% on its stock-market debut in Shanghai, drawing intense demand for its initial retail offering. The company is backed by Tencent and is developing domestic alternatives to Nvidia.

Demand drives a first-day surge

Enflame’s initial retail offering received orders for more than 6,000 times the shares available before the company reallocated more stock to that group. The IPO made Enflame the last of China’s “four little dragons” of AI chipmaking to go public.

“Four little dragons” all rallied on listing

Enflame follows other domestic chip startups that surged at debut and stayed higher afterward. MetaX jumped nearly 700% on its first day in December, Moore Threads gained over 400% at its debut, and Biren rose 76% on its IPO in January.

Investors bet on replacing Nvidia in China

Investors are focused on whether domestic AI chipmakers can replace Nvidia in China. Nvidia accounted for nearly 60% of China’s AI accelerator market in 2025, according to IDC data cited in Enflame’s prospectus.

Enflame’s filing also points to pressure on Nvidia’s position in China’s data center compute market, including U.S. export controls and Beijing’s limited appetite for advanced chips as China pursues tech self-sufficiency.

Revenue rises, profits still absent

Founded in 2018, Enflame said it plans to use IPO proceeds to develop and commercialize its fifth- and sixth-generation AI chips. The company reported revenue of 990 million yuan ($147 million) in 2025, up from 722 million yuan a year earlier, but it has yet to turn a profit.

Why it matters

Enflame’s debut adds momentum to China’s domestic AI chip push at a time when demand is rising for local compute options. Its pricing and first-day trading performance signal that capital markets are still willing to back new entrants in the race to scale AI hardware inside China.