Enflame Shares Rise 206% in Shanghai Debut, Backing Its Next AI Chips

Investors drove Enflame shares 206% higher in the chipmaker’s Shanghai debut. The company plans to put IPO proceeds into fifth- and sixth-generation AI chips intended to match high-end international products, but those products—and a profitable business—are still to come.

The Tencent-backed company, founded in 2018, develops AI processors for China’s domestic AI-computing market. It is the last of China’s four leading AI-chip startups, often called the “four little dragons,” to go public. Its initial retail offering drew orders for more than 6,000 times the shares available before additional stock was allocated to retail investors.

The funding now targets two chip generations

Enflame plans to use the listing proceeds to develop and commercialize its fifth- and sixth-generation AI chips. It says those products are meant to match high-end offerings from international rivals. That is a stated performance objective, not a demonstrated comparison.

What the debut put in place

• A 206% share-price rise on Enflame’s first day of trading.
• Retail orders exceeding available shares by more than 6,000 times before the retail allocation increased.
• IPO proceeds earmarked for developing and commercializing the next two chip generations.

206%Share-price rise on debut

Enflame shares rose 206% after beginning trading in Shanghai.

More than 6,000 timesRetail orders versus shares available

The initial retail offering attracted orders for more than 6,000 times the available shares before more stock was allocated to retail investors.

990 million yuan2025 revenue

Revenue increased year over year, but Enflame had not yet turned a profit.

A large market remains in play

International chipmakers led by Nvidia accounted for nearly 60% of China’s AI-accelerator market in 2025, according to IDC data cited in Enflame’s prospectus. An AI accelerator is hardware used for AI computing. The figure shows the share of the domestic market that Enflame and other Chinese suppliers are seeking to win.

Revenue has grown, but profit has not arrived

Enflame reported 990 million yuan in 2025 revenue, up from 722 million yuan a year earlier, while remaining unprofitable. The listing provides funding and an emphatic investor signal; the next meaningful evidence will be whether Enflame can commercialize its planned chips and turn that revenue growth into profit.