Artificial Intelligence chipmaker Enflame Technology is ready to give chip giant NVIDIA a run for its money as its share price surges in its Shanghai trading debut.
The Tencent-backed company’s performance reflects continued investor interest for AI chip makers in China. Enflame is projected to tussle US’ NVIDIA. Jensen Huang has been basking in the multi-billion limelight as NVIDIA’s revenues and profits rocket across the board.
At the Goldman Sachs Communacopia + Technology conference on September 10, Huang told the attendees that Nvidia invented the GPU, which back then were largely sold to consumers to improve PC gaming.
“One GPU now is not $399. It’s $8.5 million dollars. That’s one GPU, all connected with NVLink, two million parts, right? 250,000 kilowatts. That’s a GPU, and we ship thousands of them.
“I think we could grow 70% year over year. We’re confident about that,” Huang said again on Thursday. Analysts expect the company to end its current fiscal year at about $400 billion in revenue. So, 70% growth would mean around $680 billion next year.”
That is to be seem come 2027.
Enflame Debut
Enflame is creating waves with its Shanghai Stock Exchange debut – the Star 50 Index fell 1.3 per cent at the open, while the benchmark CSI 300 Index dropped 0.9 per cent. It raised about USD 912.55 million by selling 43.04 million shares.
This valued Enflame at about USD 9.10 billion before trading even began, making it one of the most-largest tech listings in China for 2026. It plans to use most of the proceeds to develop its fifth- and sixth-generation AI chips, related software and large-scale computing systems, according to its prospectus.
Enflame is one of a group of Chinese AI chip startups sometimes called the ‘four little GPU dragons’, alongside Moore Threads, MetaX and Biren Technology.
Tencent is Enflame’s largest shareholder, with a 17.95% stake after the offering, and was also the company’s largest customer before the listing.
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