Cambricon Stock Surge Continues as AI Chip Demand Soars in China

Chinese AI chip designer Cambricon Technologies has seen its stock price skyrocket. Shares have surged an incredible 130 percent in just the past two weeks. This dramatic rise is fueled by massive demand for its artificial intelligence processors. The company is capitalizing on U.S. restrictions on NVIDIA chip exports to China.

According to analyst reports from firms like Goldman Sachs, Cambricon is entering a hyper-growth phase. The company’s revenue exploded in the first half of 2025. This performance has shocked many investors and analysts watching the sector.

From “King of Losses” to Market Darling

Cambricon’s current success follows a difficult period. The company was once known locally as the “king of losses.” It had accumulated nearly $1 billion in losses by the end of 2024.

U.S. export controls imposed in 2022 severely impacted its business. However, newer restrictions in April 2025 became a turning point. Stricter rules on NVIDIA and AMD GPU sales created a massive market opportunity.

Cambricon’s newest chip, the Siyuan 590, is a key driver. Reports indicate it delivers about 90% of the performance of NVIDIA’s A100 GPU. This performance level meets a critical need for Chinese tech firms.

Valuation and Risks in the Spotlight

Goldman Sachs has raised its price target for Cambricon shares twice recently. The firm now projects a target of 2,104 yuan. It also forecasts chip shipments will grow from 145,000 units this year to over 2.3 million by 2030.

This optimism has pushed Cambricon’s market valuation above $90 billion. That figure represents 68% of SK Hynix’s market cap. Yet, Cambricon generates only a tiny fraction of the revenue.

This valuation faces significant risks. Cambricon competes with deep-pocketed giants like Huawei and Alibaba. A major concern is customer concentration. Data shows nearly 80% of its revenue comes from a single client, ByteDance.

The Cambricon stock surge reflects a bet on China’s AI independence. However, its extreme reliance on one customer presents a clear and present danger to its long-term stability.

Info at your fingertips

What is Cambricon Technologies?

Cambricon is a fabless AI chip designer based in China. The company develops processors for artificial intelligence and machine learning applications. It is also known by its Chinese name, Hanwuji.

Why is Cambricon stock rising so fast?

The stock is rising due to booming demand for its AI chips after U.S. restrictions on NVIDIA. Analyst upgrades, like those from Goldman Sachs, have also fueled investor excitement. The company’s recent financial performance showed astronomical revenue growth.

What is the main risk for Cambricon?

The primary risk is a high customer concentration. Nearly 80% of its revenue comes from a single customer, ByteDance. This makes the company vulnerable if that client reduces orders or switches suppliers.

How does its chip compare to NVIDIA’s?

Cambricon’s Siyuan 590 chip offers roughly 90% of the performance of NVIDIA’s A100 GPU. This makes it a viable domestic alternative for Chinese companies unable to access the latest U.S. technology.

Who are Cambricon’s main competitors?

Its main competitors are other large Chinese tech firms developing AI chips. This includes industry giants like Huawei and Alibaba. These companies have significant financial resources and large internal markets for their chips.