On December 5, 2025, news emerged of a significant new competitor for NVIDIA in China, as shares of Moore Threads surged 500% on their first day of trading on the Shanghai exchange. The company is positioned as a domestic alternative to NVIDIA, a direct response to U.S. government restrictions on the sale of advanced AI chips to China. This development underscores the escalating tensions in the global semiconductor market and highlights China's determined push for technological self-reliance. While NVIDIA currently dominates the AI chip market with a share of around 92%, the rise of government-backed domestic players like Moore Threads presents a notable long-term challenge to NVIDIA's ability to maintain its stronghold in the lucrative Chinese market.