Enflame Tech Stock Soars Over 220% in Shanghai Debut as Investors Bet on Chinese AI Chipmakers

Enflame Technology, China's last 'four little dragons' of AI chipmaking to go public, has seen its stock soar over 220% in its Shanghai debut on Friday.

The company raised 6.12 billion yuan ($912 million) in its initial public offering and opened at RMB 410 ($61.13), rising as high as RMB 460 ($68.59).

Investors are betting that domestic chipmakers can chip away at Nvidia Corp.'s (NASDAQ:NVDA) dominance in China, where the company controls nearly 60% of the country's AI accelerator market.

Enflame will use the IPO proceeds to develop and commercialize its fifth- and sixth-generation AI chips, aiming to match the performance of high-end products from international rivals.