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Could the next Nvidia (NASDAQ:NVDA) really be hiding in plain sight on the Chinese market? With Moore Threads, a company many refer to as the “Nvidia of China,” soaring around 425% on its public market debut, many investors might be wondering if it’s a good idea to hedge one’s bets with the fast-rising Chinese company, especially given how close the U.S.-China AI race might actually be.
Undoubtedly, with Nvidia’s top boss Jensen Huang warning that the U.S. is not all that far ahead of China, perhaps investors shouldn’t be too shocked if China serves up just a few more AI surprises (and yes, maybe even another shocker, the likes of which hasn’t been witnessed since the rise of DeepSeek) in the new year and beyond.
What’s the deal with Moore Threads’ explosive IPO? Should Nvidia investors be worried?
For now, it’s tough for U.S. investors to get a piece of Moore Threads, a firm that many may never have heard of prior to its multi-bagger IPO session last week. The company, which, like Nvidia, makes GPUs (Graphics Processing Units) to power the AI boom, might be worth keeping tabs on, especially if you have a lot of skin in the AI race with the U.S. AI innovators and hyperscalers.
That said, unless your brokerage offers access to the right exchanges, odds are you can’t get a piece of Moore Threads quite yet. But even if it were readily accessible on the U.S. markets by way of an American Depository Receipt (ADR), would you really want to pick up a few shares, given how heated and potentially overvalued they are after the IPO boom?
Personally, I think the name is way too hot to handle at a time like this, especially when you consider the high risk of a pullback that could certainly exceed 50% or even 75%. The stock could implode and still be up big from its debut day. In any case, Moore Threads could make more strides to catch up with Nvidia, and it would still (at least in my view) be a less compelling deal than Nvidia shares today, which might not be all so bubbly, after all, especially when compared to the likes of a Moore Threads.
Moore Threads booms in debut, but it’s not a serious GPU rival, at least not yet
The Moore Threads story seems to sound all too familiar, with the firm being founded with a focus on gaming. When the AI boom took off, the firm suddenly found itself at the right place at the right time. Undoubtedly, Moore Threads isn’t just behind Nvidia when it comes to GPU tech; it’s arguably many, many generations behind in the game. Arguably, the GPU maker might be a play on restrictions on Nvidia imports into China, or perhaps a government-driven emphasis on staying local with Chinese GPUs.
With the Trump administration reportedly giving the green light to sell to China, provided the U.S. gets a 25% cut of the sales, perhaps it’s time to be a net buyer of shares of Nvidia, rather than paying too much attention to Moore Threads, even though recent action has been more exciting. Looking into the new year, Moore Threads has some intriguing innovations coming out of the pipeline.
The company is spending considerable sums of cash to advance its GPUs beyond the Pinghu era. But there’s still so much ground to catch up, and I have my doubts as to whether the gap can be closed at a time like this. Arguably, I’d bet Nvidia could widen the gap further, and that makes the American GPU kingpin a worthier bet at a time like this.
Forget about Moore Threads. Nvidia stock looks far better
So, if you’re excited about the Moore Threads move, perhaps you should be even more excited to buy a better GPU maker at a lower price of admission with Nvidia. As Nvidia shares get moving higher again while Moore Threads cools off, I have a feeling we’ll soon forget about the latter firm as more focus returns on Nvidia, the king of AI, which may very well be single-handedly keeping the AI trade alive and well.