BUSINESS

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

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

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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.

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Cambricon Technologies' stock surged 11.4% to 1,384.93 yuan, nearly overtaking Kweichow Moutai as China's most expensive stock, with its shares up over 562% since September 2024 and a P/E ratio of 4,463.
Surge in Chinese AI chip stocks follows Nvidia-related tensions, new domestic AI model launches, and expectations of local firms gaining market share.
Cambricon’s Q1 2025 revenue was 1.11 billion yuan (+4,230% YoY), but the company remains reliant on a few clients, with its largest contributing 79.2% of 2024 revenue.

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Who’s Who

Cambricon Technologies Corp. Ltd.: Cambricon Technologies Corp. Ltd. (688256.SH) is a Chinese AI chipmaker whose shares have surged significantly, nearly surpassing Kweichow Moutai as China's most expensive stock. The company's rally is driven by market expectations for domestic chipmakers amid U.S.-China tech tensions. Cambricon recently issued a cautionary statement regarding misleading rumors. They reported substantial revenue growth in Q1 2025 and are planning a private placement for large-model chip and software projects.

Kweichow Moutai Co. Ltd.: Kweichow Moutai Co. Ltd. (600519.SH) is a Chinese liquor-maker that, as of September 2024, had a stock price of 1,490.33 yuan. It holds the position of one of China's most expensive stocks, with a price-to-earnings ratio of 20 times.

Hygon Information Technology Co. Ltd.: Hygon Information Technology Co. Ltd. (688041.SH) is a Chinese AI chipmaker whose shares jumped 12.92% on Monday to 210.1 yuan, increasing over 50% since August 12. This surge is attributed to expectations that local firms will gain market share amidst uncertainty surrounding U.S. rival Nvidia Corp.

Baidu Inc.: Baidu Inc.'s Hong Kong-listed shares saw a 5.72% increase on Monday. This rise followed the announcement that its chip design unit, Kunlunxin, secured a significant order from China Mobile Ltd. for a billion-yuan level. This indicates Baidu's active participation and success in China's domestic AI chip market.

China Mobile Ltd.: China Mobile Ltd. recently placed a billion-yuan-level order with Baidu Inc.'s chip design unit Kunlunxin. This order was part of a centralized procurement project and contributed to a 5.72% rise in Baidu's Hong Kong-listed shares following its announcement on August 21.

Nvidia Corp.: Nvidia Corp. is a major U.S. rival in the AI chip market. The company faced scrutiny over its China-specific H20 AI chip, with the U.S. government requiring 15% of sales revenue remitted, and China's Cyberspace Administration investigating potential security risks. Nvidia reportedly instructed suppliers to halt H20 production, impacting the market.

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 "upcoming next-generation domestic chips." The company's large models are contributing to increased demand for computing power from domestic cloud vendors and telecom operators, which is improving the outlook for the domestic computing industry and creating opportunities for homegrown chips.

Samsung Electronics Co. Ltd.: Samsung Electronics Co. Ltd. was reportedly instructed by Nvidia to stop producing the H20 AI chip. This news, from U.S. tech-focused media outlet The Information, contributed to a rally in Chinese chip stocks. This happened around August 22, 2025, according to the article.

Amkor Technology Inc.: Amkor Technology Inc. is a parts supplier that, alongside Samsung Electronics Co. Ltd., was reportedly instructed by Nvidia to halt production related to the H20 AI chip. This report contributed to a rally in Chinese chip stocks.

Guohai Securities Investment Co. Ltd.: Guohai Securities Investment Co. Ltd. reported that Cambricon's 2024 revenue growth was fueled by expansion into the internet, telecom, and financial sectors. They projected that Cambricon's Siyuan 590 chip could achieve 80% of Nvidia's A100 performance. The firm also noted that growing demand for computing power from domestic cloud vendors and telecom operators is creating an "accelerated replacement window" for homegrown chips.

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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