Moore Threads Crashes 20% as Lockup Expires, Challenging Nvidia Dominance

Moore Threads, China's Nvidia challenger, crashed 20% on Monday after millions of previously locked-up shares became eligible for trading. The GPU maker hit the Shanghai Star Market's daily down-limit at 415.48 Chinese yuan within minutes of the open, its lowest level since its December listing.

The catalyst for the slump was the expiration of a nine-month lockup on 25.8 million shares allocated to investors in Moore Threads' IPO. The shares represent just 5.5% of the company, but their release nearly doubled the number of shares available for trading.

Investors who bought at 114.28 yuan a share are still up more than 260% even after Monday's plunge. The selloff is a sharp reversal for one of the biggest winners from China's AI frenzy.