Core Viewpoint - The article highlights the rapid rise of China's information technology industry, particularly in the chip sector, with a focus on the unicorn company Moore Threads, which is on track to become the first domestic GPU stock [2][3]. Group 1: Company Overview - Moore Threads has made significant progress in its IPO application, receiving approval from the Shanghai Stock Exchange in just 88 days, a much shorter timeframe compared to the average of around 200 days for other companies [4]. - Founded by Zhang Jianzhong, a former NVIDIA executive, Moore Threads aims to develop a full-function GPU with its self-developed architecture, MUSA, which supports a wide range of precision calculations [7][8]. - The company has a diverse product lineup, including consumer GPUs, professional graphics acceleration cards, and AI computing products, with a total R&D investment of 3.81 billion yuan from 2022 to 2024 [8][10]. Group 2: Financial Performance - Moore Threads has accumulated losses exceeding 5 billion yuan over the past three years, despite its products showing competitive performance against NVIDIA's offerings [8][12]. - The company plans to raise 8 billion yuan through its IPO, with a focus on AI chip and graphics chip development, aiming to enhance its strategic transformation and product technology iteration [13][14]. - In 2024, Moore Threads is projected to achieve revenue of 432 million yuan, with a significant increase in revenue expected in the first half of 2025, reaching 702 million yuan [14][15]. Group 3: Market Position and Competition - Despite the rapid growth in AI computing demand, Moore Threads faces intense competition, with its market share in AI computing products currently below 1% [16]. - The article notes that other domestic GPU companies are also pursuing IPOs, indicating a growing trend in the capital market for similar firms [17].

Investment Rating - The report maintains an "In-Line" industry view for Greater China Technology Semiconductors [6]. Core Insights - China's AI GPU self-sufficiency is projected to increase from 34% in 2024 to 82% by 2027, with the total addressable market (TAM) for cloud AI expected to grow at a CAGR of 28% to reach US$239 billion by 2027, with China accounting for approximately US$48 billion [2][17]. - The overall semiconductor self-sufficiency ratio in China is currently at 24%, up from 20% in 2023, driven by government subsidies, inventory digestion, and capacity ramp-up in memory and leading node products [3][11]. - Local GPU suppliers like Huawei and Cambricon are primarily supported by SMIC, which faces capacity expansion challenges [2][18]. Summary by Sections AI GPU Self-Sufficiency - The self-sufficiency ratio for AI GPUs in China is estimated at 34% for 2024 and expected to rise to 82% by 2027, with significant growth in the cloud AI market [2][17]. - The TAM for cloud AI is projected to grow to US$48 billion in 2027, with China expected to capture 20% of global demand [2][17]. Semiconductor Market Overview - China's semiconductor market was valued at approximately US$183 billion in 2023, with local companies generating US$43 billion in revenue, marking a 36% increase from US$32 billion in 2023 [3]. - The self-sufficiency ratio for semiconductors in China is currently at 24%, reflecting a 4 percentage point increase from the previous year [3][11]. Localization Progress - Significant advancements have been made in memory, image sensors, and power semiconductors, while equipment and EDA progress has been slower than expected [8]. - Local vendors in memory and power semiconductors are benefiting from the growth in electric vehicles and gaining market share over global competitors [8]. Stock Implications - The report is equal-weight on SMIC and Empyrean Technology, noting that while SMIC is crucial for local AI chip production, potential Nvidia acquisitions could impact domestic GPU market share [4]. - Positive outlook on China wafer fab equipment makers like Naura, AMEC, and ACM Research due to local foundry and memory capacity expansion [4].