China's Nvidia challenger crashed 20%China's Nvidia challenger crashed 20% in a reality check for an AI darling as the AI-chip boom faces a reality check

Moore Threads, one of China’s most prominent homegrown AI GPU challengers to Nvidia, fell 20% on Monday after a nine-month lockup on IPO shares expired. The company’s stock hit the Shanghai Star Market’s daily down limit at 415.48 yuan within minutes of the opening, its lowest level since listing in December. The trigger was the release of 25.8 million shares allocated to IPO investors, representing 5.5% of the firm and nearly doubling the number of shares available to trade. Investors who bought at 114.28 yuan were still up more than 260% despite the plunge.