Moore Threads Sees $4.3M Profit as Nvidia Rival Thrives in Beijing’s Chip Initiative

Key Takeaways

Moore Threads Technology reported a net profit of 29.4 million yuan (US$4.3 million) for Q1 2026, shifting from a loss of 112.5 million yuan a year prior.
Quarterly revenue surged 155% year on year, reaching 737.6 million yuan, following a record revenue of 1.5 billion yuan in 2025.
In 2026, the company plans to enhance core technology and expedite the launch of next-generation chips.

Company Performance and Strategy

Moore Threads Technology, a Chinese contender to Nvidia, has reported a significant turnaround in its financial performance, marking its first profitable quarter in Q1 2026. The Beijing-based company posted a net profit of 29.4 million yuan (approximately US$4.3 million), a stark contrast to the net loss of 112.5 million yuan experienced in the same quarter of the previous year. This impressive recovery comes amidst a rising demand for computing power fueled by China’s ongoing initiative for chip self-sufficiency.

In addition to the profit, Moore Threads saw its quarterly revenue skyrocket by 155% year on year, totaling 737.6 million yuan. This robust growth follows a remarkable year in 2025 when the company’s revenue tripled to 1.5 billion yuan, and it managed to reduce its net losses by 36.7%, bringing it down to 1.02 billion yuan.

Zhang Jianzhong, the founder and CEO of Moore Threads, emphasized the company’s strategic alignment with national objectives in their 2025 annual report. The focus moving forward will be on achieving breakthroughs in core technology and speeding up the development and rollout of next-generation chips. Zhang, who previously headed Nvidia’s China operations, is steering the company towards these ambitions to capture a larger share of the domestic GPU market.

Additionally, Moore Threads disclosed a major order valued at 660 million yuan for its KUAE computing cluster, which comprises tens of thousands of interconnected GPUs. The details regarding the client for this order remain undisclosed. This highlights the growing confidence in the capabilities of Moore Threads’ technology and its competitive positioning in the evolving GPU landscape.

As the demand for high-performance GPUs continues to rise, Moore Threads is well-poised to capitalize on this trend, especially as China prioritizes advancements in its semiconductor industry. With these developments, the company aims to solidify its position as a key player in the domestic and potentially global GPU market, contributing to China’s ambition for greater independence in chip production and technology innovation.

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