Core Viewpoint - Muxi Co., Ltd. has experienced a dramatic decline in stock price, dropping from a peak market value of 350 billion to below 250 billion, raising concerns about its inflated valuation amidst ongoing losses [1][3]. Group 1: Stock Performance - Muxi Co., Ltd. saw its stock price surge by 750% upon listing, reaching a peak of 895 yuan per share, but has since plummeted over 30% to around 615 yuan, resulting in a market value loss exceeding 100 billion [3][4]. - The stock has been characterized by high volatility, with daily fluctuations leading to significant losses for retail investors who bought at peak prices [3][5]. Group 2: Valuation Concerns - The company's valuation is significantly disconnected from its fundamentals, with a market-to-sales ratio exceeding 500 times projected revenue for 2024, compared to an average of 60 times for similar companies in the semiconductor sector [4]. - Despite expectations of revenue growth to 1.5-1.98 billion in 2025, the company is projected to incur losses of 527 million to 763 million, raising questions about its high market valuation [4][6]. Group 3: Challenges Ahead - Muxi Co., Ltd. faces three major challenges: ongoing financial losses due to high R&D costs, impending share unlocks that may lead to increased selling pressure, and intense competition from established players like NVIDIA and domestic firms [5][6]. - The company's R&D expense ratio is projected to be 121.24% in 2024, indicating a significant cash burn without profitability [5]. Group 4: Industry Perspective - The volatility of Muxi Co., Ltd.'s stock highlights a broader question in the A-share market regarding how to value hard technology companies, emphasizing the need for a balance between narrative and actual performance [6][7]. - The domestic GPU market is expected to grow significantly, with projections indicating a market size exceeding 80 billion by 2025, but companies must demonstrate real performance to justify high valuations [6].