Moore Threads Technology (SS:688795) reported a return to profitability for the January-March quarter, prompting a strong market reaction on Monday as investors responded to accelerating demand for domestically produced graphics processing units and computing clusters tied to artificial intelligence applications.
The Beijing-based company posted a net profit of 29.4 million yuan for the quarter, versus a net loss of 112.5 million yuan in the same period a year earlier. Revenue for the quarter rose 155% year-on-year to 737.6 million yuan, the company said, reflecting heightened uptake of its computing products used for AI workloads.
Shares of the Shanghai-listed firm jumped as much as 12.8% intraday to 720 yuan, marking their strongest level since December 2025. The price move underscores heightened investor interest following the company's shift back into profitability and the rapid top-line expansion reported for the quarter.
Moore Threads, founded by former Zhang Jianzhong, has been increasing output of its core GPUs and related computing clusters to capitalise on demand from Chinese customers and the broader push for semiconductor self-sufficiency. The company has explicitly positioned its products as a domestic alternative to Nvidia (NVDA), a vendor that faces U.S. export restrictions on advanced AI chips intended for the Chinese market.
The quarter's results signal improved revenue generation and a move toward positive earnings, while the stock response highlights how financial markets are reacting to operational progress and market positioning. The company cited robust growth in computing demand tied to artificial intelligence as the primary driver behind the revenue surge.
Investors will likely monitor whether Moore Threads can sustain revenue growth and margins as it scales production and competes with established global suppliers operating under different regulatory constraints. For now, the combination of a return to profit and a sizeable year-on-year revenue increase has translated into renewed investor enthusiasm reflected in the share price.
Key points
- Moore Threads recorded a net profit of 29.4 million yuan in Q1 after a year-earlier loss of 112.5 million yuan.
- Revenue climbed 155% year-on-year to 737.6 million yuan, driven by demand for AI-related computing.
- Shares rallied up to 12.8% to 720 yuan on Shanghai's exchange, reaching their highest level since December 2025. Sectors impacted include semiconductors, AI compute, and equity markets.
Risks and uncertainties
- Competitive landscape - the company is positioning itself as a domestic alternative to Nvidia, indicating competitive pressure in the AI GPU market.
- Policy and trade environment - U.S. export restrictions on advanced AI chips to China are part of the broader backdrop affecting supplier dynamics and market access.
- Market volatility - the sharp intraday share price move demonstrates potential equity volatility as investors reassess execution and growth prospects.