Muxixi Holdings' performance in the Year of the Horse is improving: long-term potential is beginning to show, but it still needs to overcome four major challenges.

Domestic GPU industry has recently been making positive news. After a certain company achieved annual profitability, Mu Xi Co., Ltd. also announced impressive performance progress. According to the latest earnings forecast, Mu Xi Co., Ltd. is expected to achieve revenue of 400 million to 600 million yuan in Q1 2026, a significant year-over-year increase. Although net profit attributable to shareholders is still in a loss, the loss has been greatly narrowed compared to the same period last year. Previously released 2025 earnings brief also showed the company’s full-year revenue achieved leapfrog growth, and losses have improved, indicating the company is gradually approaching break-even.

The market responded positively to Mu Xi Co., Ltd.'s performance. The company’s stock price rose after the earnings forecast was released, but still lags behind the highs at the beginning of the year and on the first trading day. This reflects the market’s cautious attitude towards the company’s profitability and future development, making 2026 a key year for the company’s growth.

Mu Xi attributes its performance improvement to technological innovation, market expansion, and the rapid development of the artificial intelligence industry. Relying on high-performance GPU products and a comprehensive software ecosystem, the company has gained broad recognition from customers. In recent years, Mu Xi’s revenue has continued to grow, and losses have gradually decreased. Compared to peers, the company demonstrates clear advantages in cost control and operational efficiency.

On the business front, core products continue to expand, driving an upgrade in growth structure. Through the “1+6+X” strategy, the company converts technological accumulation into market share and effectively spreads fixed costs, easing profit pressure. Scale growth, cost control, and efficiency improvements are the three pillars supporting the company’s positive performance.

As a startup high-tech enterprise, Mu Xi also invests heavily in long-term stability and sustainability. The core team mostly comes from international chip giants, with extensive experience in high-performance GPU fields. A large R&D team and ample capital reserves provide strong support for future development. The company’s complete product line can meet diverse customer needs in a one-stop manner, and the versatility and flexibility of its technological approach make it more attractive in the market.

Mu Xi is also continuously expanding into emerging sectors by investing in related tech companies, fueling future growth. The “1+6+X” development strategy aims to empower multiple key industries with a high-performance GPU platform and expand various application scenarios. This strategy helps the company increase computing power construction amid explosive market demand and the vigorous push for domestic substitution.

However, Mu Xi faces some challenges and shortcomings. Although revenue has improved, its growth rate has slowed, and sustainability of growth remains to be tested. High R&D investment, while industry-appropriate, also brings short-term profitability pressure and risks of R&D failure. The product structure is relatively simple, with heavy reliance on integrated training chips, and customer concentration is high. These factors could impact future performance.

Externally, Mu Xi faces pressure from international giants like NVIDIA and fierce competition within the domestic GPU sector. Balancing broad and precise, large and strong, is an important issue for the company. Diversified user demands and supply chain constraints due to chip import restrictions are also areas requiring attention.

Capital market sentiment also influences Mu Xi’s business development and future prospects. Although the stock price rose after performance improvements, overall valuation remains high, resulting in significant gains for shareholders. How to align performance with valuation and avoid collective profit-taking risks is another challenge the company must address.