BUSINESS

AI Chipmaker Cambricon Inches Closer to Becoming China’s Priciest Stock

Published: Aug. 25, 2025 6:17 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Cambricon’s stock closed up 11.4% on Monday at 1,384.93 yuan ($191.07) per share.

Shares of Chinese AI chipmaker Cambricon Technologies Corp. Ltd. (688256.SH) surged Monday, bringing the company to the brink of unseating Kweichow Moutai Co. Ltd. (600519.SH) as the most expensive stock on China’s A-share market.

Cambricon’s stock closed up 11.4% on Monday at 1,384.93 yuan ($191.07) per share, just shy of the fiery liquor-maker Kweichow Moutai, which closed at 1,490.33 yuan. The chip company’s shares have more than doubled since mid-July and have climbed over 562% since September 2024. The rally has pushed Cambricon’s price-to-earnings ratio to 4,463 times, far exceeding Moutai’s 20 times.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Cambricon’s stock surged 11.4% to 1,384.93 yuan, nearing Kweichow Moutai’s 1,490.33 yuan, with shares up over 562% since September 2024 and a 4,463x P/E ratio.
Strong AI-chip maker rallies are fueled by anticipated gains amid Nvidia’s China chip challenges and recent advances by Chinese AI firms.
Cambricon posted Q1 revenue of 1.11 billion yuan (+4,230% YoY), with 2024 revenue up 65.6% to 1.17 billion yuan and net loss narrowing to 865 million yuan.

AI generated, for reference only

Who’s Who

Cambricon Technologies Corp. Ltd.: Cambricon Technologies Corp. Ltd. is a Chinese AI chipmaker whose shares have surged significantly. This rally is fueled by expectations that Chinese firms will capture market share amidst uncertainty surrounding Nvidia. Cambricon's financials show strong revenue growth, albeit with a reliance on a few key customers. The company is raising capital for large-model chip and software projects, aiming to compete with leading AI chip providers.

Kweichow Moutai Co. Ltd.: Kweichow Moutai Co. Ltd. (600519.SH) is a Chinese liquor-maker that holds the distinction of being the most expensive stock on China's A-share market. However, its position is being challenged by Chinese AI chipmaker Cambricon Technologies Corp. Ltd.

Hygon Information Technology Co. Ltd.: Hygon Information Technology Co. Ltd. (688041.SH) is a Chinese AI chipmaker. Its shares jumped 12.92% on Monday to 210.1 yuan, a more than 50% increase since August 12. This aligns with a broader investor fervor for domestic AI-chip makers.

Baidu Inc.: Baidu Inc.'s Hong Kong-listed shares saw a 5.72% increase. This surge followed an announcement on August 21 that its chip design unit, Kunlunxin, secured a significant order from China Mobile Ltd. for a centralized procurement project.

China Mobile Ltd.: China Mobile Ltd. is mentioned as having placed a billion-yuan level order for chips from Kunlunxin, Baidu Inc.'s chip design unit. This order is part of a centralized procurement project by China Mobile.

Nvidia Corp.: Nvidia Corp. faces uncertainty in China regarding its H20 AI chip, despite U.S. approval. The U.S. government mandates Nvidia remit 15% of its China AI chip sales revenue to Washington. Nvidia was also summoned to address potential security risks of the H20 chips, and reportedly instructed parts suppliers to halt H20 production.

Samsung Electronics Co. Ltd.: Samsung Electronics Co. Ltd. is mentioned as a parts supplier for Nvidia. They were reportedly instructed to halt production related to the H20 AI chip, which contributed to a rally in Chinese chip stocks.

Amkor Technology Inc.: Amkor Technology Inc. is a parts supplier that was reportedly instructed by Nvidia to halt production related to the H20 AI chip. This news, reported by The Information, contributed to gains for Chinese chip stocks.

DeepSeek: DeepSeek is a Chinese AI firm that announced its new DeepSeek-V3.1 model on August 21. This model's precision is specifically designed for integration with "upcoming next-generation domestic chips." This announcement positively influenced market sentiment for Chinese AI chipmakers.

Guohai Securities Investment Co. Ltd.: Guohai Securities Investment Co. Ltd. published a report on Cambricon's 2024 revenue growth. They projected that Cambricon's Siyuan 590 chip could achieve 80% of Nvidia's A100 performance. They also noted that increased demand for computing power from domestic cloud vendors and telecom operators is improving the outlook for China's computing industry, creating an "accelerated replacement window" for homegrown chips.

AI generated, for reference only

What Happened When

2023：: Cambricon posted a net loss of around 1 billion yuan for the year.

Full year 2024：: Cambricon’s revenue grew 65.6% to 1.17 billion yuan, and net loss (excluding nonrecurring items) narrowed to 865 million yuan.

September 2024：: Cambricon shares began a rally that would eventually climb over 562% by August 2025.

First quarter 2025：: Cambricon reported revenue of 1.11 billion yuan (a 4,230% YoY increase) and a net profit of 276 million yuan, reversing a 261 million yuan loss a year earlier. Net cash outflow from operating activities increased to 1.4 billion yuan.

Mid-July 2025：: Cambricon's shares had more than doubled by August 25, 2025, compared to this date.

July 31, 2025：: The Cyberspace Administration of China summoned Nvidia to address potential security risks in the H20 chips and required document submissions.

August 12, 2025：: Shares in Hygon Information Technology Co. Ltd. had increased more than 50% by August 25, 2025.

August 15, 2025：: Cambricon issued a cautionary investor statement, denying online rumors about large substrate orders, revenue forecasts, new products, sample deliveries, potential customers, and its supply chain.

August 21, 2025：: Baidu announced its chip design unit Kunlunxin had won a billion-yuan level order from China Mobile Ltd. Separately, DeepSeek announced its new DeepSeek-V3.1 model.

August 22, 2025：: The Information reported Nvidia instructed suppliers like Samsung Electronics and Amkor Technology to halt H20 AI chip-related production.

August 25, 2025：: Cambricon Technologies' shares surged 11.4% to close at 1,384.93 yuan per share. Hygon’s shares jumped 12.92% to 210.1 yuan. Baidu’s Hong Kong shares rose 5.72%.

AI generated, for reference only