Chinese GPU designer Muxi issued a clarification statement on July 9, denying market rumors that its products were fully booked through next year. The company stated that its executives made no such remarks at public events, and warned that Muxi remains unprofitable with a price-to-book ratio exceeding 30x – well above industry averages – exposing investors to high valuation and volatility risks.
On the day of the announcement, Muxi’s shares touched RMB 1,008 intraday, joining the A-share "thousand-yuan club" with a market cap exceeding RMB 400 billion, up over 860% from its December 2025 IPO price of RMB 104.66. The stock later retreated, closing at RMB 981.88 on July 9, and dipped below RMB 900 on July 10.
Founded in 2020 and listed on the STAR Market in late 2025, Muxi develops four GPU lines: XiYun C-series for cloud AI training/inference, XiSi N-series for inference, XiCai G-series for graphics rendering, and XiSuo S-series for scientific computing. As of end-2025, cumulative GPU shipments exceeded 55,000 units, deployed across a dozen AI compute clusters.
According to IDC, domestic AI accelerator shipments reached 1.65 million units in 2025, with Muxi holding roughly 4% share – ranking sixth among domestic players, behind Huawei, T-Head, Kunlunxin, and Cambricon.
Financially, Muxi posted 2025 revenue of RMB 1.64 billion (+121% YoY) but a net loss of RMB 781 million. Q1 2026 revenue was RMB 562 million with a net loss of RMB 98.8 million. The company previously projected breakeven by 2026, and in June announced plans for a Hong Kong listing to build an A+H dual-platform structure.
The broader domestic GPU sector is seeing rapid public-market entry. Cambricon’s market cap exceeded RMB 1 trillion in June 2026 with its first-ever quarterly profit above RMB 1 billion; Moore Thread turned profitable in Q1; Biren passed its HKEX hearing in December 2025; and Enflame received CSRC approval on July 9. Valuations and earnings are now diverging sharply – while winners like Cambricon and Moore Thread have delivered profits, others still rely on continuous funding to sustain R&D.
The recent rumor-driven volatility highlights speculative sentiment in the domestic GPU space. Despite a clear long-term AI localization trend, most valuations have priced in overly optimistic expectations. The real test ahead: which players can consistently convert growing revenue into bottom-line profits.
From ICgoodFind: RMB 1,000 stock, zero profit – that’s the AI chip bubble in one sentence. The rumor was fake, but the valuation is real. What matters now is not orders – it’s cash flow.
