Analysis of Iluvatar CoreX (09903.HK) Hong Kong Stock Market Debut Performance and AI Chip Valuation Logic

Based on the collected information, I provide you with a professional analysis report on Iluvatar CoreX’s Hong Kong listing and AI chip valuation logic.

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officially listed on the Main Board of the Hong Kong Stock Exchange on January 8, 2026, with an issue price of HK$144.60 per share. It opened at HK$190.2 and closed at HK$156.8 on its debut, representing an increase of 8.44%[1][2]. The total funds raised amounted to approximately HK$3.677 billion, with a market capitalization of around HK$41.3 billion[1][2].

From the perspective of market reaction, Iluvatar CoreX exhibited a typical “high opening, low closing” trend:

• Opening Performance
  : It opened sharply 31.54% higher than the issue price, showing strong market confidence in the domestic general-purpose GPU track[2]
• Closing Performance
  : The gain narrowed to 8.44%, reflecting a gradual return to rationality among investors[1]
• Grey Market Trading
  : It rose by 36%-37% in grey market trading on January 7, laying a high market expectation for its official listing[2]

This IPO has received wide recognition from institutional investors:

• Public Offering
  : Received approximately 414.24 times oversubscription[1][2]
• International Offering
  : Received 10.68 times oversubscription[2]
• Cornerstone Investors
  : 18 cornerstone investors were introduced, with a total subscription amount of HK$1.583 billion[2]

The lineup of cornerstone investors is highly prestigious, including industry leaders such as ZTE (Hong Kong) and 4Paradigm, as well as top domestic and international financial institutions like UBS, Fullgoal Asset Management, and China Asset Management[2].

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From late 2025 to early 2026, the “Four Little Dragons” of domestic GPUs completed their capital assembly:

Company	Listing Date	Listing Venue	Debut Performance	Peak Market Capitalization
Moore Threads	December 2025	STAR Market	Over 425% increase	Over RMB 300 billion
Muxi Semiconductor	December 2025	STAR Market	Approximately 700% surge	Exceeding RMB 300 billion
Biren Technology	January 2, 2026	Hong Kong Stock Exchange	75.82% increase	Over HK$100 billion
Iluvatar CoreX	January 8, 2026	Hong Kong Stock Exchange	8.44% increase	Approximately HK$41.3 billion

Behind this intensive IPO wave are several driving factors:

1. Policy Dividends
   : The domestic substitution strategy continues to advance, and the STAR Market and HKEX’s Rule 18C provide convenient financing channels for hard tech enterprises
2. Industrial Demand
   : The demand for AI computing power has grown explosively, and the appeal for independent and controllable local computing power has become increasingly urgent
3. Capital Pursuit
   : Institutional investors’ understanding of the core logic of hard tech has improved, and “focusing on domestic substitution and computing power scarcity” has become the core investment theme[3]

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The semiconductor industry is undergoing a fundamental transformation of its valuation system in 2025. According to industry analysis, the core changes are reflected in:

1. Shift from PE to PS
   : For unprofitable AI chip companies, the market pays more attention to revenue growth and market share rather than short-term profits
2. Growth Premium
   : The valuation logic of companies in the AI track is supported by three pillars: demand side, supply side, and performance side[3]
3. Structural Valuation Differentiation
   : Semiconductor infrastructure is rapidly absorbing profits across the entire IT industry. The proportion of semiconductor net profit EPS in the S&P 500 within the IT industry has risen from less than 20% to about 40%[4]

:

• Revenue Growth
  : From 2022 to 2024, revenue grew from RMB 189 million to RMB 540 million, with a compound annual growth rate of 68.8%; in the first half of 2025, revenue reached RMB 324 million, a year-on-year increase of 64.2%[2]
• Sustained Losses
  : Cumulative losses over three and a half years reached RMB 2.873 billion; net losses in 2022, 2023, 2024, and the first half of 2025 were RMB 554 million, RMB 817 million, RMB 892 million, and RMB 609 million respectively[1]
• Cash Flow Pressure
  : Operating activities continue to consume cash; cash flows from operating activities were -RMB 654 million, -RMB 707 million, -RMB 618 million, and -RMB 716 million in 2022, 2023, 2024, and the first half of 2025 respectively[1]

:

• The price-to-sales (P/S) ratio is approximately 76x (based on 2024 revenue of RMB 540 million), which is at a relatively high level in the AI chip industry
• The high valuation is mainly based on high growth (revenue growth rate exceeding 60%) and market position (a leading enterprise in China’s general-purpose GPU sector)

Company	Issue Price/Opening Price	Debut Increase	Market Capitalization	Core Logic
Muxi Semiconductor	Issue Price	+700%	RMB 300 billion	Domestic substitution of AI computing power chips
Moore Threads	RMB 114.28	+425%	RMB 300 billion	GPU technological breakthrough
Biren Technology	HK$19.6	+75.82%	HK$100 billion	First general-purpose GPU stock
Iluvatar CoreX	HK$144.6	+8.44%	HK$41.3 billion	General-purpose GPUs and AI solutions

From the perspective of debut performance, Iluvatar CoreX’s increase is significantly lower than that of its peers, mainly due to the following reasons:

1. High Valuation Base
   : The valuation of HK$35.4 billion has fully reflected market expectations
2. Large Loss Scale
   : Cumulative losses of RMB 2.87 billion over three and a half years have raised investor concerns about profitability prospects
3. Return of Rational Market Sentiment
   : After the surges of Moore Threads and Muxi Semiconductor, enthusiasm in the capital market has cooled down slightly

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According to data from Bernstein and CIC Consulting, the market share of domestic GPU companies is still very small:

• In 2024, the market shares of Cambricon, Moore Threads, and Muxi Semiconductor all hovered around 1%
• In 2024, Biren Technology’s market share in the intelligent computing chip market was 0.16%, and 0.2% in the GPGPU segment
• The gap is huge compared with international giant NVIDIA

Capital is observing patiently and cautiously: who can convert technological potential into “real gold and silver” profits the fastest and most steadily[5]. Although Iluvatar CoreX has achieved cumulative shipments of over 52,000 chips, served 290 customers, and completed over 900 deployments, profitability remains a key challenge.

• Cambricon turned profitable; Foxconn Industrial Internet’s AI server revenue grew by over 300% year-on-year, and its stock price rose by 500% cumulatively within three months
• Moore Threads and Muxi Semiconductor were sought after after listing, reflecting investors’ recognition of the dual logic of “technological breakthrough + commercial implementation”[3]

The market is distinguishing between “AI-related” and “genuine AI” companies:

• Qualcomm’s stock price fell from its highs due to the delay of its AIPC/edge-side LLM narrative
• Companies that truly have technological barriers and commercialization capabilities continue to enjoy valuation premiums

According to WSTS forecasts, the global semiconductor market will reach $975.46 billion in 2026, achieving a year-on-year growth of 26.3%. The market size of high-end AI chips in China is expected to grow by over 60% in 2026, and local AI chips are expected to expand their market share to around 50%[6].

:

• Seize the indigenous innovation market relying on the policy dividends of “domestic substitution”
• Breakthroughs in software stacks (CUDA alternatives), heterogeneous computing integration, and energy efficiency ratio

:

• Bypass CUDA hegemony and build integrated hardware-software solutions through open-source frameworks
• Prioritize establishing standards in emerging fields such as autonomous driving and scientific computing
• Utilize domestic mature manufacturing processes to improve computing power density through advanced packaging stacking

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1. Technological Iteration Risk
   : International giants continue to launch more advanced products, which may widen the technological gap
2. Profitability Risk
   : Sustained losses may lead to cash flow shortages, affecting R&D investment and market expansion
3. Market Competition Risk
   : Intensified domestic competition may lead to price wars that compress profit margins
4. Geopolitical Risk
   : Export controls on chip manufacturing equipment and technologies may affect the supply chain

:

• Pay attention to the sustainability of revenue growth and optimization of customer structure
• Focus on tracking the timing of the profitability inflection point
• Evaluate the actual deployment effects in key industries (finance, healthcare, transportation, manufacturing)

:

• The long-term growth logic remains unchanged, but valuations have fully reflected expectations
• It is recommended to focus on companies with clear commercialization paths and technological barriers
• Distinguish between “conceptual” and “pragmatic” investment targets

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Iluvatar CoreX only rose by 8.44% on its Hong Kong debut, with an increase lower than that of its peers, reflecting subtle changes in the valuation logic of AI chips:

1. From Blind Pursuit to Rational Return
   : After the surges of Moore Threads and Muxi Semiconductor, market sentiment has gradually calmed down
2. From Concepts to Performance
   : Investors pay more attention to actual commercial implementation and profitability
3. From Valuation Expansion to Value Verification
   : High valuations require sustained performance growth to support them

For the domestic AI chip industry, 2026 is a critical year from capital assembly to industrial breakthrough. Listing is not the end, but the starting point of a more intense commercial competition. Those that can survive the cycle will be the enterprises that convert technological potential into sustained profitability.

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[1] Sina Finance - Iluvatar CoreX Raises HK$3.677 Billion, Rises 8.44% on Debut, Loses RMB 2.87 Billion Over Three and a Half Years (https://finance.sina.com.cn/jjxw/2026-01-08/doc-inhfqtyt1317707.shtml)
[2] Securities Times Network - China’s First General-Purpose GPU Enterprise Iluvatar CoreX Officially Lists on HKEX (https://www.stcn.com/article/detail/3578078.html)
[3] China Construction Bank - Chips in 2025: The “Year of Structural Formation” Has Arrived, AI Computing Power and Storage “Fly on Two Wings” (https://sinfo.ccb.com/newsinfo/neiis/20260104/A10zgjsyhzx72106/A10zgjsyhzx72106.html)
[4] X (Twitter) - AI Demand Drives Reconstruction of Valuation System for Semiconductor Infrastructure (https://x.com/fi56622380/status/1995312446043763100)
[5] Financial Investment News - Start of 2026: Capital Frenzy and Tough Challenges Behind Domestic AI Chips (https://wap.eastmoney.com/a/202601053609055791.html)
[6] Caixin - AI Drives Structural Transition of Semiconductor Industry, How Will the Market Evolve in 2026? (https://companies.caixin.com/2026-01-08/102401588.html)
[7] Securities Times Network - HKEX IPOs Get a Strong Start in 2026 (https://www.stcn.com/article/detail/3580280.html)