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China's AI Chip Leader Cambricon Hits Third Straight Record High, Edging Closer to 1,000 Yuan

TradingKeyAug 14, 2025 9:28 AM

TradingKey - On August 14, Cambricon, a Chinese AI chip manufacturer, saw its stock rise over 14% intraday to once reach 985 yuan.This marked the third consecutive day of record highs as the stock edged towards the 1,000 yuan milestone. Its market capitalization briefly surpassed 400 billion yuan with a trading volume of 14 billion yuan. By market close, the stock had risen 10.35% to 949 yuan.

Recently, it has experienced significant upward momentum, with a 20% increase on August 12, hitting the daily limit, following rumors that Cambricon placed large orders with Taiwanese substrate maker Unimicron, planning to produce 500,000 chips next year, with 20,000 units this month. These chips, equivalent to the 690 model, are expected to have an average selling price of 80,000 to 100,000 yuan. The rumors also suggested that Cambricon's performance in the second half of the year could exceed expectations, with annual revenues potentially reaching 10 billion yuan. Although Cambricon denied these rumors on the evening of the 12th, investor enthusiasm remained undeterred.

The market's optimism towards Cambricon is supported by its fundamentals. Financial reports reveal that the company achieved its first-ever quarterly profit in Q4 2024 since going public. This trend continued in Q1 2025, with quarterly revenue surging to 1.111 billion yuan, marking a year-on-year increase of 4230.22%, reversing a long-standing trend of losses.

Additionally, Nvidia was recently scrutinized by the Cyberspace Administration of China due to severe security concerns, with government advisories urging domestic companies to avoid using Nvidia's H20 chips. Industry experts suggest that the demand for domestic AI chip alternatives is strengthening amid the backdrop of U.S.-China tech tensions and trade tariffs, benefiting Chinese chip stocks led by Cambricon.

In recent months, the A-share market has seen a comprehensive strengthening of the computational power sector, with semiconductors, AI chips, AI servers, and optical modules becoming hotspots for investment.

Amidst this backdrop, Zheshang Securities recently issued a "buy" rating for Cambricon, recognizing its capabilities as one of the few companies able to mass-produce and deliver cloud AI chips. Armed with a mature product lineup and proprietary architecture, Cambricon is constructing the foundational hardware for domestic AI. The World Artificial Intelligence Conference (WAIC) 2025 has already showcased robust AI computational demands and business potential. As autonomous driving enters a new phase of development, emerging needs for high concurrency, low latency, and edge deployment provide additional market opportunities for the company.

However, market observers caution that attention should be paid to the sustainability of future performance growth and whether the stock price disconnects excessively from fundamentals.

Moreover, Cambricon has been on the U.S. Commerce Department's "Entity List" since 2022, requiring U.S. companies to obtain licenses to export technology to Cambricon. Additionally, products containing specific U.S. technologies are prohibited from being exported to the company, potentially impacting the stability of its supply chain.

Reviewed byJane Zhang
Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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