Core Viewpoint - The approval of Mu Xi Integrated Circuit (Shanghai) Co., Ltd. for its initial public offering on the Sci-Tech Innovation Board highlights the support of the domestic capital market for "hard technology" enterprises, particularly in the GPU sector [1][4]. Industry Overview - The GPU design industry has high technical barriers, requiring expertise across hardware architecture, IP/SoC chips, packaging, software architecture, and driver programs, with a typical R&D to mass production cycle of 2-3 years [2]. - The global GPU market is characterized by a duopoly, with IDC projecting the domestic accelerated computing server market to reach $22.1 billion in 2024, with GPUs accounting for 69% of this market [2]. - By 2029, the market size is expected to exceed $100 billion, emphasizing the strategic value of domestic GPU companies as they seek controllable solutions in response to international market pressures [2]. Company Development - Mu Xi focuses on the general GPU sector for data centers, which is the highest value segment of the industry chain, and aims to match international standards with its products [3]. - The company's flagship product, the Xi Yun C500, has received feedback indicating its performance is on par with or exceeds that of international competitors [3]. - As of March 2025, Mu Xi has sold over 25,000 GPUs, with applications in various intelligent computing clusters across major cities [3]. - The company reported a compound annual growth rate of 4074.52% in revenue over the past three years, with projected revenue of approximately 900 million yuan in the first half of 2025, surpassing the total revenue for 2024 [3]. - As of September 5, 2025, Mu Xi's order backlog reached 1.43 billion yuan, nearly double the total revenue for 2024, indicating strong future growth potential [3]. Market Dynamics - The current capital market environment is resonating with the hard technology sector, providing a supportive framework for long-cycle R&D and validating the investment value of hard technology through breakthroughs in core technologies and commercialization capabilities [4]. - The institutional support is crucial for Mu Xi to accelerate technological iterations and market expansion, contributing to the domestic GPU localization process and the autonomy of computing power infrastructure [4].

Core Viewpoint - The approval of Muxi Integrated Circuit (Shanghai) Co., Ltd. for its IPO on the Sci-Tech Innovation Board highlights the support of the domestic capital market for "hard technology" enterprises, particularly in the GPU sector [1][2]. Industry Overview - The GPU design industry has high technical barriers, requiring expertise across hardware architecture, IP/SoC chips, packaging, software architecture, and drivers, with a typical R&D to mass production cycle of 2-3 years [2]. - The global GPU market is characterized by a duopoly, with international firms holding a dominant position. The domestic accelerated computing server market is projected to reach $22.1 billion in 2024, with GPUs accounting for 69% of this market [2]. Company Development - Muxi focuses on the general GPU sector for data centers, which is the highest value segment of the industry chain. Its product, the Xiyun C500, is reported to match or exceed the performance of international competitors [3]. - The company has achieved significant sales milestones, with over 25,000 GPUs sold by March 2025, and has established applications in various AI public computing platforms across major cities [3]. - Financially, Muxi has demonstrated resilience with a compound annual growth rate of 4074.52% in revenue over the past three years, with projected revenue of approximately 900 million yuan in the first half of 2025, surpassing the total revenue for 2024 [3]. Order and Growth Potential - As of September 5, 2025, Muxi's order backlog reached 1.43 billion yuan, nearly double the total revenue for 2024, indicating strong future growth potential [4]. - The company anticipates achieving breakeven by 2026 as revenue scales up and operational efficiencies are realized [4]. Market Dynamics - The synergy between capital market reforms and the growth trajectory of Muxi illustrates a deep resonance with the hard technology sector, where supportive policies provide a conducive environment for long-term R&D [5]. - Muxi's ability to leverage institutional advantages for technological advancement and market expansion is crucial for its path to profitability and contributes to the domestic GPU localization process [5].

Core Viewpoint - The GPU industry is experiencing rapid growth, with new players like Muxi emerging to challenge established companies like Cambricon. Muxi plans to go public on the Sci-Tech Innovation Board, aiming to provide autonomous computing power for China's AI industry [1][2]. Group 1: Company Overview - Muxi was founded in September 2020 in Shanghai by key former AMD employees, including Chen Weiliang, who has extensive experience in GPU production [3][4]. - The company has raised over 2 billion yuan in funding, with significant investments from various institutions, and reported revenue of 53.02 million yuan in 2023 [5]. - Muxi's revenue is projected to grow explosively, reaching approximately 743 million yuan in 2024, with a business model that includes direct sales and distribution [5]. Group 2: Market Dynamics - The GPU market is driven by the demand for computing power, particularly in AI training and scientific simulations, with the rise of generative AI further expanding market needs [2][8]. - The GPU industry has evolved through three phases, with the current phase characterized by the integration of cloud and edge computing and multi-GPU interconnect technology [9]. - Despite the dominance of global players like NVIDIA and AMD, domestic companies are narrowing the gap, with Muxi showing the highest revenue growth rate in the industry at 4074.52% from 2022 to 2024 [9][11]. Group 3: Opportunities and Challenges - The domestic GPU market presents significant opportunities for new players, particularly in areas like domestic substitution, intelligent computing center construction, and AI for Science [12]. - However, challenges include rapid algorithm iteration, high capital requirements, and the complexity of building an ecosystem that integrates chips, software, and applications [14][15].

Core Viewpoint - The recent policy changes by the China Securities Regulatory Commission (CSRC) are aimed at supporting hard technology companies, particularly those in the GPU sector, which are characterized by high research and development (R&D) costs and long cycles [1][6]. Group 1: Policy and Market Environment - The CSRC has introduced measures such as the "16 Articles for Science and Technology Innovation" and "8 Articles for the Science and Technology Innovation Board," which enhance the capital market's inclusivity for hard technology companies [1]. - The GPU market is currently dominated by a few players, with NVIDIA holding over 80% of the global market share, indicating high entry barriers for new competitors [3]. - The demand for AI-related applications is driving the growth of the GPU market, with projections indicating that the domestic accelerated computing server market will reach approximately $22.1 billion in 2024, with GPUs accounting for 69% of this market [3]. Group 2: Company Overview - Muxi Integrated Circuit (Shanghai) Co., Ltd. - Muxi focuses on general-purpose GPU chip development and has made significant technological breakthroughs in the AI chip sector, which has been traditionally dominated by international firms [2]. - As of September 5, 2025, Muxi has secured orders worth 1.43 billion yuan, providing a solid foundation for future growth [2][5]. - Muxi's business model aligns with international standards, targeting the high-value data center market, similar to NVIDIA's approach [4]. Group 3: Financial Performance and Growth Potential - Muxi has shown rapid revenue growth, with a compound annual growth rate of 4074.52% over the past three years, and its revenue for the first half of 2025 is projected to exceed the total revenue for 2024 [5]. - Despite currently operating at a loss primarily due to R&D expenditures, Muxi's losses are expected to narrow as the company approaches breakeven, potentially by 2026 [5][6]. - The company has already commercialized over 25,000 GPUs across various intelligent computing clusters, indicating a successful market penetration [5].

Core Viewpoint - The article emphasizes the supportive regulatory environment for hard technology companies, particularly in the GPU sector, highlighting the potential for growth and investment opportunities in this area due to recent policy changes and market dynamics [1][4]. Group 1: Regulatory Environment and Support - The China Securities Regulatory Commission (CSRC) has introduced measures such as the "16 Articles for Science and Technology Innovation" and "8 Articles for the Science and Technology Innovation Board," which enhance the capital market's acceptance of hard technology companies [1]. - The regulatory support is particularly aimed at unprofitable but technically strong science and technology enterprises, indicating a shift towards accommodating high R&D, long-cycle industries [1]. Group 2: Company Profile - Muxi Integrated Circuit - Muxi Integrated Circuit (Shanghai) Co., Ltd. focuses on general-purpose GPU chip development and has achieved technological breakthroughs in the AI chip sector, traditionally dominated by international firms [2]. - Despite currently being in a loss-making state, Muxi's significant R&D investments reflect its commitment to core technology and its strategic contribution to national computing infrastructure [2]. - As of September 5, 2025, Muxi has secured orders worth 1.43 billion yuan, providing a solid foundation for future growth [2][8]. Group 3: Market Dynamics and Demand - The GPU market is characterized by high technical barriers, with design processes typically taking 2-3 years and requiring substantial R&D investments [3]. - The global GPU market is dominated by a few players, with NVIDIA holding over 80% market share, indicating high entry barriers for new competitors [3]. - The rapid adoption of AI applications is driving demand for computing chips, with the domestic accelerated computing server market projected to reach approximately $22.1 billion in 2024, with GPUs accounting for 69% of this market [4]. Group 4: Financial Performance and Growth Trajectory - Muxi's revenue has shown rapid growth, with a compound annual growth rate of 4074.52% over the past three years, indicating successful commercialization of its products [7]. - The company aims to achieve breakeven by 2026, supported by a strong order backlog and anticipated revenue growth [8][9]. - Muxi's long-term technical accumulation is a core driver of its accelerated commercialization, with over 25,000 GPUs sold and applications across various intelligent computing clusters [7].

Core Viewpoint - The event "Networking for AI" highlighted the progress of the domestic AI computing power industry chain and emphasized the importance of collaboration among industry players to achieve a closed-loop ecosystem for AI computing power in China [1][3][6]. Group 1: Event Overview - The "Networking for AI" ecosystem salon was successfully held in Shanghai, focusing on the theme of achieving a closed-loop in the domestic AI computing power industry chain [1]. - Key industry players and technical experts from companies like China Mobile, Tencent Cloud, and others participated, showcasing advancements from computing chips to algorithm models and computing services [1][3]. Group 2: Industry Insights - The East China Branch of the China Academy of Information and Communications Technology emphasized the need for technological innovation, improved computing power scheduling systems, and deeper application integration to enhance the quality of the AI computing power industry in Shanghai [3]. - The shift from hardware procurement to ecosystem adaptation and co-construction in intelligent computing centers is crucial for overcoming domestic computing power bottlenecks [4][6]. Group 3: Technological Developments - The article discusses the significance of interconnect technology in AI infrastructure, highlighting its role in enhancing model performance and reducing costs [6][7]. - NVIDIA's advancements in interconnect technology, such as NVLink, are noted as strategic pillars for GPU communication, with high bandwidth capabilities [7][10]. Group 4: Collaborative Initiatives - The OISA (Open Intelligent Sensing Architecture) initiative aims to break traditional bandwidth and latency bottlenecks, facilitating large-scale deployment of AI computing clusters [14][15]. - Major companies like China Mobile and Xinhua San are collaborating to promote the integration of computing power and interconnect technology, with the OISA 2.0 protocol supporting up to 1024 AI chips and achieving TB/s bandwidth [14][15]. Group 5: Future Outlook - The demand for AI computing power is shifting from individual intelligence to collective intelligence, making interconnect technology increasingly vital for enhancing computing density and performance [18]. - The article concludes that the ability to effectively interconnect domestic computing power will be a key factor in winning the AI infrastructure competition in the coming years [18].

Investment Rating - The report indicates a strong investment outlook for the domestic GPU industry, particularly highlighting the leadership of Mu Xi in the general-purpose GPU sector [3]. Core Insights - The GPU market in China is expected to grow significantly, with an estimated market size of approximately 1,000 billion yuan for GPUs and 425 billion yuan for other AI chips by 2024 [3][8]. - Domestic internet giants are increasing capital expenditures, with Alibaba planning to invest over 380 billion yuan in AI computing centers and data centers over the next three years [3][10]. - Mu Xi is positioned as a leading domestic high-performance general-purpose GPU company, with a self-developed architecture that is compatible with CUDA [3][18]. Summary by Sections 1. GPU Industry - The GPU industry is gradually establishing a domestic computing and AI model ecosystem, with significant growth in the market size of accelerated chips [4][9]. - By 2024, the domestic accelerated chip market is projected to exceed 270 million units, with local brands accounting for over 82 million units shipped [3][8]. 2. Mu Xi Co., Ltd. - Mu Xi has developed a comprehensive product matrix covering AI computing, general computing, and graphics rendering, with notable products including the Xi Yun C500 and C550 series GPUs [3][38]. - The company has achieved a revenue CAGR of 4075% from 2022 to 2024, with 2024 revenue reaching 743 million yuan [31][35]. - Mu Xi's team comprises industry veterans with backgrounds from AMD, enhancing its technological capabilities [27][30]. 3. Key Investment Targets - The report identifies several key investment targets in the GPU sector, including Cambrian, Haiguang Information, and Mu Xi itself, as well as advanced process-related companies like SMIC and Hua Hong Semiconductor [3][5].

Core Viewpoint - The article discusses the recent response from Muxi Co., Ltd. regarding the inquiry letter for its initial public offering and listing on the Sci-Tech Innovation Board, focusing on its product offerings, market competition, and financial performance. Product and Market Competition - Muxi's products are categorized into training and inference integrated series (GPU boards, GPU servers), intelligent computing inference series (GPU boards), IP licensing, and others, with significant revenue fluctuations across different product types [1][3] - The company has delivered nine intelligent computing clusters, catering to various customer needs, including integrated servers and workstations [1] - The global GPU market is dominated by Nvidia and AMD, with domestic competitors including Huawei HiSilicon, Suiruan Technology, and Kunlun Core, which focus on specialized computing architecture [1] - Muxi's competitive position against international and domestic leaders is not sufficiently detailed in the prospectus [1] Financial Performance and Product Structure - Muxi's revenue from the training and inference integrated series has significantly increased, with the revenue share rising from 30.09% in 2023 to 97.87% in Q1 2025, while the intelligent computing inference series has dropped from 100% to 1.25% during the same period [12][14] - The main revenue sources are the Xiyun C500 series products, which have gained substantial market recognition due to their performance and alignment with industry needs [15][16] - The company has focused its resources on flagship products, which is a common strategy among industry peers like Nvidia, where flagship products dominate revenue streams [18] Product Development and Market Trends - Muxi was established in 2020 with a clear focus on AI training and inference chips, aligning with the growing market demand for such products [10][14] - The company has successfully launched the Xiyun C500 series, which competes with Nvidia's A100 in performance, and has been well-received in various industry applications [15][16] - The GPU chip development cycle is long and capital-intensive, making the concentration on flagship products a strategic choice for Muxi [17] Competitive Landscape and Challenges - The domestic GPU market faces challenges such as competition from international giants, high customer service standards, and a relatively weak software ecosystem [22][23][24] - Muxi's products are positioned to meet the increasing demand for high-performance GPUs in AI applications, particularly in the context of geopolitical tensions and the push for domestic alternatives [15][26] - The company has established partnerships with various sectors, enhancing its market presence and brand recognition [27][28]

Group 1 - The article highlights the support from the Ministry of Industry and Information Technology for domestic GPU development, indicating a competitive landscape among local companies in the GPU sector [1] - Moores Threads is developing the MTT S80, a full-featured GPU capable of running major games, with a Pre-IPO valuation of 25.5 billion [1] - Jingjia Micro is positioned as a key player with its JM9 GPU nearing the performance of GTX 1050, and a significant market share in government and financial sectors [1] - Birran Technology's BR100 GPU boasts three times the computing power of international flagship products, positioning it as a leader in domestic alternatives despite being listed by the US [2] - Muxi Integration has successfully delivered the Xiyun C500 GPU, with plans for the C600 to support FP8 and CUDA compatibility, marking it as a major player in domestic scaling [3] - Lishuan Technology is set to launch a 6nm GPU in 2025 that will outperform RTX 4060, focusing on digital twins and out-of-order rendering [4] - Haiguang Information stands out as the only company with both CPU and GPU capabilities, forming a unique ecosystem with products widely used in various sectors [5] Group 2 - The article notes that while domestic GPUs may struggle to catch up with established players like NVIDIA, AMD, and Intel in the short term, there is potential for significant growth in the long term, similar to the evolution seen in the home appliance and automotive industries [5]

Core Viewpoint - The A-share market has shown strong performance, with significant gains in the technology sector, particularly in AI chip companies like Cambrian and Hygon, which have seen stock price surges of over 20% and 300% respectively, raising the valuation ceiling for AI chip stocks in the STAR Market [1] Group 1: Company Performance - Muxi Co., Ltd. has reported continuous losses from 2022 to Q1 2025, with cumulative losses reaching 3.29 billion yuan, indicating a trend of increasing losses year over year [2] - The company has invested heavily in R&D, totaling 2.466 billion yuan, which is 2.2 times its total revenue of 1.116 billion yuan during the same period, alongside significant stock-based compensation expenses of 602 million yuan [2] - Operating cash flow has been negative across all periods, with a total outflow of 4.361 billion yuan, highlighting ongoing cash flow challenges [2] Group 2: Debt and Liquidity Issues - By the end of 2024, Muxi's total interest-bearing debt is projected to rise to 2.291 billion yuan, with short-term debt at 517 million yuan and long-term debt at 1.774 billion yuan, indicating a concerning debt structure [2] - As of Q1 2025, the company's total debt decreased to 432 million yuan, but the proportion of short-term debt surged to 92%, with 398 million yuan needing to be repaid within nine months [3] - The company faces significant repayment pressure, with cash reserves of only 123 million yuan, much of which is earmarked for operational expenses, leading to concerns about liquidity risk [4]