That was fast. If anyone thought the artificial-intelligence frenzy would come to an end in 2026, trading in China suggests otherwise as a chip maker’s initial public offering sparked the first bout of AI hype of the year.
Shares in Chinese AI chip designer Biren soared 76% in their Friday debut while Baidu stock jumped 9% as its semiconductor arm, Kunlunxin, filed for a Hong Kong IPO.
Optimism has rippled across to the U.S., with the S&P 500 set to start the year higher and indications of an outperformance for the Nasdaq signaling that Chinese AI optimism is buoying American names, too.
There has been, and continues to be, massive opportunity in Chinese AI stocks. Homegrown chip maker Moore Threads gained more than 400% in its December IPO, and forthcoming listings from the likes of AI software companies MiniMax and Zhipu could see similar attention that stokes debate on a growing AI bubble.
China’s AI sector has been boosted by trade tensions with the U.S. and Beijing’s protectionism limiting sales of advanced AI chips from Nvidia in China. While many hot Chinese chip stocks have been dubbed “China’s Nvidia,” none are real technical competitors to the world’s most valuable public company.
This makes regulatory risks—like an unimpeded Nvidia in China—loom large. In a historic echo, Biren had the best major Hong Kong debut since early 2021, when many Chinese tech names traded at twice their current value before regulatory headwinds crushed the sector.
It should be noted that the first trading day of January rarely defines the year ahead. The start of 2022 saw the S&P 500 at a record high before its worst year since 2008, while poor openings in 2023, 2024, and 2025 later led to annual gains of around 20%. But in terms of narrative, at least, betting against AI hype in 2026 seems folly.