China braces for potential sell-off as MetaX lock-up period expires
Quick Look
China anticipates significant selling pressure on MetaX Integrated Circuits as a lock-up period for 14 million shares expires Thursday, following a similar market decline seen recently with rival AI chipmaker Moore Threads.
AI-generated summary
Why It Matters
China is actively working to build domestic alternatives to US-based Nvidia GPUs. Recent lock-up expirations in the sector have led to significant volatility.
China is bracing for a potential massive sell-off of a high-profile artificial intelligence chip stock on Thursday, when a lock-up period affecting 14 million shares in MetaX Integrated Circuits is set to expire.
Analysts expect MetaX to face “significant selling pressure” when the restricted shares are released for trading, after the expiry of a similar lock-up period for shares in fellow AI chip firm Moore Threads last week sparked an avalanche of sales that wiped nearly 49 billion yuan (US$7.3 billion) off the company’s value in a single day.
The looming release of the MetaX shares is seen as a crucial test for China’s AI chip stocks, which have attracted huge investor interest as China strives to develop domestic challengers to US graphics processing unit behemoth Nvidia.
What to Watch
AI outlook — possibilities, not facts
MetaX shares will face significant selling pressure upon lock-up expiry.
Likely · Within days
Open Questions
- Will the sell-off match the scale of the Moore Threads decline?
- How will institutional investors react to the increased supply?
