MetaX Integrated Circuits Lock-Up Expiry Tests China's AI Chip Stocks

A lock-up period covering 14 million shares in MetaX Integrated Circuits is scheduled to expire on Thursday, prompting expectations of heavy selling in the Chinese AI chip company's stock. Analysts anticipate "significant selling pressure" once the restricted shares become tradable. The test follows the expiry of a comparable lock-up for rival AI chip firm Moore Threads last week, which triggered a wave of sales that erased nearly 49 billion yuan (US$7.3 billion) from that company's value in one day. MetaX had drawn intense investor attention with a blockbuster market debut in December, and its shares have since come under pressure ahead of the release. The outcome is viewed as a crucial gauge for China's AI chip sector, which has benefited from strong investor appetite as the country works to build domestic competitors to US graphics processing unit giant Nvidia.