Core Viewpoint - The article discusses the competitive landscape of China's AI chip industry, highlighting the recent stock performance of leading companies like Cambricon and the implications of new IPOs from emerging players like Moore Threads, Muxi, and Biren Technology [1][2][6]. Group 1: Stock Performance and Market Dynamics - Cambricon's stock price surged nearly fourfold last year, reaching a historical high of 818.87 yuan, but has since corrected by about 30% [1]. - The entry of new players into the IPO market is expected to increase competition for Cambricon, potentially leading to a collapse of its stock price bubble [1][2]. - The recent announcement by Siemens and other EDA giants to lift export restrictions to China adds complexity to the domestic chip industry [1][5]. Group 2: IPO Developments - Biren Technology plans to go public in Hong Kong in the third quarter, with the possibility of submitting its application as early as August [1]. - Moore Threads and Muxi's IPO applications were accepted by the Shanghai Stock Exchange, indicating a faster approval process for their listings [2]. - Both Moore Threads and Muxi aim to capitalize on the domestic GPU market, with Moore Threads planning to raise 8 billion yuan for AI training chip development and Muxi seeking 3.9 billion yuan for general-purpose GPU and AI inference chip R&D [2]. Group 3: Industry Challenges and Opportunities - The geopolitical landscape has opened a window for China's chip industry, as NVIDIA's market share in China has dropped from 95% to 50% due to U.S. export controls [2]. - Despite rapid revenue growth, companies like Moore Threads and Biren Technology face challenges such as high R&D costs and ongoing losses, with projected revenues of 438 million yuan and net losses of 1.49 billion yuan for Moore Threads in 2024 [2]. - The lifting of EDA software export restrictions by the U.S. provides temporary relief but highlights the ongoing strategic competition between the U.S. and China in the semiconductor sector [5][6].

Group 1 - The core viewpoint of the article highlights a significant transformation in the valuation logic of China's technology industry, particularly regarding loss-making IPOs and the acceptance of high R&D expenditures as a new standard for valuation [1][9] - The acceptance of loss-making companies for IPOs on the Sci-Tech Innovation Board indicates a shift in the listing standards, moving from profitability to a focus on technological capabilities and R&D investments [1][9] - The article discusses the substantial fundraising efforts of companies like Moer Technology and Muxi Co., with Moer Technology raising 8 billion yuan, 60% of which is allocated to AI training chips, and Muxi Co. raising 3.9 billion yuan, with 82% directed towards 7nm GPU mass production [3][9] Group 2 - The article outlines a three-tiered arms race in hard technology, emphasizing the dual paths of GPU localization led by Moer Technology and Muxi Co., with Moer focusing on a full-function GPU architecture and Muxi on high-performance computing GPUs [3][4] - It notes that for every 100 million yuan invested in R&D, companies can expect a valuation premium of 320 million yuan, indicating a strong correlation between R&D investment and market valuation [4] - The article identifies two categories of companies: high R&D loss-making firms benefiting from policy incentives and profitable technology firms demonstrating stable growth, with examples including Qinheng Microelectronics and Yuyuan Composite Materials [7][9] Group 3 - The article raises concerns about the sustainability of losses for companies like Moer Technology, which has a cash reserve sufficient for only 18 months, emphasizing the critical nature of their upcoming AI training chip production in 2026 [9][10] - It discusses the potential for local government industrial funds to support these companies, with Beijing's integrated circuit fund already investing 1 billion yuan [10] - The article questions the feasibility of technology realization, with Moer Technology targeting the replacement of Nvidia's H20 by Q2 2026 and Muxi aiming to replace AMD's MI300 by Q4 2025 [10]