From CNBC · Kai Nicol-Schwarz,Jenny Lee,Evelyn Cheng · · 1m 30s
Enflame jumps 206% as China's chip bet pays off
The last of China's "four little dragons" of AI chipmaking hit the market and investors went in hard.
In brief
The last of China's "four little dragons" of AI chipmaking hit the market and investors went in hard. China's domestic AI chipmakers are being priced for an Nvidia-free future, and buyers are lining up long before the profits arrive. Originally reported by CNBC.
A 206% first day
Enflame, a Chinese chipmaker building alternatives to Nvidia, more than tripled on its Shanghai debut. Retail orders came in for over 6,000 times the shares on offer.
The last little dragon
Tencent-backed Enflame is the final member of China's "four little dragons" of AI chipmaking to list. MetaX rose nearly 700% in December, Moore Threads over 400%, Biren 76% in January.
“Enflame is the last of China's "four little dragons" of AI chipmaking to go public.”
Betting against Nvidia
Foreign chipmakers led by Nvidia held nearly 60% of China's AI accelerator market in 2025. Export controls and Beijing's push for self-sufficiency have squeezed that channel shut.
An $82 billion buildout
Goldman Sachs expects China's semiconductor capital spending to hit $82 billion by 2030, spread across chips, foundries, memory and advanced packaging as generative AI demand grows.
Homegrown chips, homegrown models
Z.ai says its GLM-5.3-Flash model runs entirely on China-made silicon, likely mixing Huawei and Enflame parts. Moonshot's Kimi K3 has closed much of the gap to frontier US models.
“Rival Z.ai said its GLM-5.3-Flash model runs entirely on China-made chips.”
Growing fast, still losing money
Revenue rose to 990 million yuan ($147 million) in 2025 from 722 million, with no profit yet. IPO money goes toward fifth- and sixth-generation chips meant to match high-end rivals.
The main idea
China's domestic AI chipmakers are being priced for an Nvidia-free future, and buyers are lining up long before the profits arrive.
