Bullish indicating open at $55-$60, IPO prices at $37
Investing.com-- Chinese AI chipmakers are poised to benefit from growing domestic demand and tighter scrutiny of Nvidia’s (NASDAQ:NVDA) advanced chips, according to Bernstein analysts.
Recent policy shifts encouraging local firms to avoid Nvidia’s H20 AI processors have fueled optimism for homegrown alternatives like Cambricon Technologies (SS:688256) and Hygon Information Technology (SS:688041), driving Cambricon’s shares up 20% in a single session, Bernstein analysts noted.
Analysts said that while Nvidia’s H20 remains in high demand globally—with projected sales exceeding $10 billion in the second half of 2025—China’s reluctance to rely on U.S. suppliers could accelerate adoption of local chips.
Cambricon, in particular, stands to gain from expanded 7nm production capacity, with Bernstein estimating potential 2026 revenue of 28.8 billion yuan if it secures 2,000 wafers per month, far above current consensus forecasts of 8.7 billion yuan.
The firm also highlighted positive spillover effects for China’s semiconductor ecosystem, including foundries like Semiconductor Manufacturing International Corp (HK:0981) and equipment makers NAURA Technology (SZ:002371) and AMEC.
"We rate Hygon, SMIC, NAURA, AMEC, Piotech (SS:688072) Outperform, and turn more positive on the outlook for Cambricon," analysts wrote.
"Foundries with advanced logic capability such as SMIC stand to benefit directly from increased local AI chip orders," they added.