BUSINESS

Cambricon Wins Approval for $559 Million Share Sale Amid Stock Frenzy

Published: Sep. 11, 2025 4:25 a.m. GMT+8

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On Aug. 28, Cambricon’s share price peaked at a record 1,595.88 yuan, briefly overtaking Kweichow Moutai Co. Ltd. as the most valuable stock in China

Chinese AI chip designer Cambricon Technologies Corp. Ltd. has received regulatory approval to proceed with a scaled-down private share placement, following a remarkable 500% rally in its share price over the past year.

The China Securities Regulatory Commission approved the plan, Cambricon said in a Tuesday filing to the Shanghai Stock Exchange. While pricing details were not disclosed, the market is closely watching how the company will value the offering amid its meteoric stock rise.

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Cambricon Technologies received regulatory approval to raise up to 3.985 billion yuan ($559 million) via a private share placement after its stock surged 504% in 12 months.
The company’s share price peaked at 1,595.88 yuan, briefly making it China's most valuable stock, but its market value of 532.6 billion yuan far exceeds fundamentals despite recent profitability.
Proceeds will fund AI chip and software development, though Cambricon faces production constraints and a funding gap of 6.171 billion yuan over three years.

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Who’s Who

Cambricon Technologies Corp. Ltd.: Cambricon Technologies Corp. Ltd. is a Chinese AI chip designer that has recently received approval for a scaled-down private share placement. This follows a significant 500% rally in its stock price over the past year. The company aims to raise up to 3.985 billion yuan ($559 million) to develop large-model chips and software, aligning with China's goal of reducing reliance on foreign technology.

Kweichow Moutai Co. Ltd.: Kweichow Moutai Co. Ltd. was briefly surpassed by Cambricon Technologies Corp. Ltd. as the most valuable stock in China on August 28, 2025. This occurred when Cambricon's share price peaked at a record 1,595.88 yuan, reaching a market capitalization of 664.3 billion yuan.

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What Happened When

2020：: Cambricon Technologies conducted its initial public offering (IPO).

April 2023：: Cambricon raised 1.672 billion yuan in a private share placement.

First half of 2024：: Cambricon reported a 609-million-yuan loss.

September 2024：: Cambricon shares began to surge, boosted by tightening U.S. export restrictions and domestic demand.

April 2025：: Cambricon announced a plan to raise nearly 5 billion yuan via private placement.

July 2025：: Cambricon reduced its proposed private placement fundraising by almost 1 billion yuan after concerns from the Shanghai Stock Exchange.

July 17, 2025：: Cambricon disclosed an estimated funding gap of 6.171 billion yuan over the next three years in a formal reply to the Shanghai Stock Exchange.

First half of 2025：: Cambricon's revenue jumped 4,347.8% year-on-year to 2.88 billion yuan; the firm posted its first-ever midyear profit of 913 million yuan, and operating cash flow turned positive for the first time.

August 28, 2025：: Cambricon's share price peaked at a record 1,595.88 yuan, briefly overtaking Kweichow Moutai as the most valuable stock in China.

September 9, 2025：: China Securities Regulatory Commission approved Cambricon's scaled-down private share placement. Cambricon filed this information to the Shanghai Stock Exchange.

AI generated, for reference only