Analysis of Biren AI Chip IPO Valuation and Industry Chain Investment Value

Biren Technology (壁仞科技) was founded in 2019 and is a Chinese local semiconductor design company focusing on high-performance general-purpose graphics processing units (GPGPU). Its main products include the BR100 and BR104 series GPUs, developed for scenarios such as AI training, inference, and scientific computing [1]. According to public information, Biren’s pre-valuation in the latest financing round was approximately RMB 14 billion [1].

Biren BR100 GPU technical parameters:

• Process Technology
  : 7nm process
• Number of Transistors
  : 77 billion
• AI Performance
  : INT8 performance reaches 2048 TOPS, BF16 performance reaches 1024 TFLOPS
• Memory Configuration
  : 64GB HBM2E memory
• Interface Standard
  : PCIe Gen 5 x16

According to the latest market data:

• NVIDIA
  : Current stock price $176.12, market capitalization $4.29 trillion, P/E ratio 43.6x [0]
• Biren Estimate
  : Based on the RMB 14 billion valuation, the estimated P/E multiple is about 35x, and the P/S multiple is about 12x

Biren and NVIDIA’s valuation gap is mainly reflected in:

:

• NVIDIA has a complete CUDA ecosystem and software stack, with a technical ecosystem score of 98 points
• Biren is relatively weak in software support and ecosystem building, with a score of about 70 points

:

• NVIDIA dominates the global AI chip market, once accounting for more than 95% of the Chinese market share
• Biren currently has an estimated market share of about 8% in China’s AI chip market and is still in the growth stage

:

• NVIDIA’s net profit margin reaches 53.01%, operating profit margin 58.84% [0]
• As a startup, Biren has not yet achieved stable profitability

Major participants in China’s AI chip market include:

• Traditional GPU manufacturers
  : Jingjia Micro, Muxi, etc.
• AI chip specialized manufacturers
  : Cambricon, Hygon Information, Biren, etc.
• Internet giant subsidiaries
  : Kunlun Chip (Baidu), Pingtouge (Alibaba), etc.

:

• Domestic enterprises still rely on external technology for advanced processes below 14nm
• Advanced process wafer foundry is restricted due to U.S. export controls [5]

:

• Chinese AI chips are close to international levels in inference computing power such as INT8
• However, there is still a gap in high-performance computing fields like FP64

:

• CUDA ecosystem has extremely high barriers; domestic manufacturers are relatively lagging in software ecosystem construction
• But there have been breakthroughs in specific application scenarios (such as security, autonomous driving)

According to industry data:

• China’s AI chip market size reached RMB 120.6 billion in 2023 [4]
• The market size will grow to $19 billion in 2024, a year-on-year increase of 86.9% [4]
• It is expected that the market size will exceed $28 billion in 2025 [4]

:

• State Council’s “Opinions on Further Implementing the ‘Artificial Intelligence +’ Action” and other policy dividends released
• The third phase of the National Integrated Circuit Industry Investment Fund has a registered capital of RMB 344 billion, focusing on key links such as AI chips [5]

:

• IDC data shows that in 2024, the market share of China’s self-developed AI chips in the domestic market has risen to 30%
• It is expected to exceed 50% in 2025 [4]

:

• Advanced processes are restricted by U.S. sanctions and are difficult to break through in the short term [5]
• Key tools like EDA software still rely on imports

:

• International competition intensifies; giants like NVIDIA may adjust their strategies in China
• Rapid technology iteration, risk of being disrupted

:

• Supply of key materials such as high-end HBM memory is restricted
• Uncertainty in wafer foundry capacity

:

1. Technological Breakthrough
   : The BR100 series has competitiveness in inference computing power
2. Market Opportunities
   : Clear domestic substitution trend and huge market space
3. Policy Dividends
   : National strategic support, obvious tilt of funds and resources
4. Team Background
   : Core team from well-known enterprises like NVIDIA and Alibaba

:

1. Technological Gap
   : Obvious gap with NVIDIA in ecosystem
2. Profitability
   : Has not yet achieved stable profitability, business model to be verified
3. Sanction Impact
   : Development restricted by U.S. technology controls

Based on the current market environment and technical level, it is recommended:

• Reasonable Valuation Range
  : P/E multiple 30-40x, corresponding to a market capitalization of RMB 12-16 billion
• Long-term Value
  : If technological breakthroughs and ecosystem construction go smoothly, it is expected to reach a valuation of RMB 30-50 billion within 3-5 years
• Investment Strategy
  : Suitable for long-term investment, but need to pay attention to technical progress and profit inflection points

Key areas to focus on:

1. AI chip design
   : Cambricon, Hygon Information, Biren, etc.
2. Wafer foundry
   : SMIC, Hua Hong Company
3. Advanced packaging
   : Tongfu Microelectronics, Yongxi Electronics
4. Key materials
   : Maole Optics, FJ Tech, etc.

China’s AI chip industry is in a historic development opportunity period. Although facing technical blockade and competitive pressure, under the dual drive of policy support and market demand, all links of the industry chain will usher in structural growth opportunities. As an important participant, Biren’s IPO performance will become an important indicator to observe the development of China’s AI chip industry.

[1] Reuters - “Mainland AI chip manufacturer Biren Technology completes overseas listing filing, may become Hong Kong’s first GPU stock” (https://finance.mingpao.com/fin/instantf/20251215/1765798921682/內地ai晶片製造商壁仞科技向完成境外上市備案或成本港股首隻gpu股)
[2] Wikipedia - “Biren Technology” (https://en.wikipedia.org/wiki/Biren_Technology)
[3] South China Morning Post - “US-sanctioned Chinese AI chip champion Biren plans IPO” (2024-09-12)
[4] Eastmoney - “2025 China GPU Industry Market Size and Competition Pattern” (https://caifuhao.eastmoney.com/news/20250912155535553461030)
[5] Securities Times - “Analysis of the Impact of U.S. Chip Policies on China’s Related Industries” (http://www.unbank.info/static/pages/2061/311425.html)
[6] Gilin AI - Real-time Financial Data and Market Analysis (2025-12-16)