China AI chip firm Cambricon rallies on record HY profit, self-reliance bets

Published 27/08/2025, 06:52
© Reuters.

Investing.com-- Cambricon Technologies (SS:688256) shares shot to a record peak on Wednesday after the AI chipmaker posted its highest half-year profit, riding a wave of investor optimism around domestic technology.

Cambricon reported a net profit of 1 billion yuan (about US$140 million) for the first half of 2025, rebounding sharply from a 533 million yuan loss a year earlier.

Revenue soared to 2.9 billion yuan, a 44-fold increase, driven by strong demand from major users like ByteDance and fueled by Beijing’s push to reduce reliance on Nvidia chips.

Building on a month of sharp gains, the Shanghai-listed stock rose another 6% on Wednesday to reach a record 1,438 yuan.

The rally has been bolstered by positive signals from AI firm DeepSeek, whose model compatibility announcements underscore rising confidence in home-grown chips.

The performance underscored China’s self-reliance strategy in AI hardware, as China seeks credible alternatives to NVIDIA Corporation (NASDAQ:NVDA) amid growing regulatory and trade headwinds impacting U.S. chipmakers.

Chinese regulators have reportedly warned domestic firms not to use Nvidia chips. Beijing had expressed concerns over "backdoor" controls and security lapses in U.S.-made chips, claims that Nvidia has denied.

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