BUSINESS

Chart of the Day: Cambricon Books Another Booming Quarter as Domestic Chip Orders Soar

Published: Oct. 29, 2025 6:58 p.m. GMT+8

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Cambricon Technologies Corp. Ltd. (688256.SH) has posted another quarter of sky-high earnings growth, as the Chinese chipmaker capitalizes on soaring domestic demand for artificial intelligence (AI) products and Beijing’s push for semiconductor self-sufficiency.

The firm’s third-quarter revenue surged more than thirteenfold year-on-year to 1.7 billion yuan ($239 million), while net profit jumped to 566.6 million yuan from a 194.4 million yuan net loss, according to its earnings report published Oct. 18. However, despite the strong results, both revenue and profit declined quarter-on-quarter.

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Cambricon’s Q3 revenue jumped over 13 times year-on-year to 1.7 billion yuan, with a net profit of 566.6 million yuan, reversing previous losses.
Strong growth driven by surging domestic AI demand and China’s push for semiconductor self-sufficiency, though production capacity lags demand.
Shares soared 126% in 2025; the company raised nearly 4 billion yuan for AI chip development but faces supply chain challenges due to U.S. restrictions.

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Who’s Who

Cambricon Technologies Corp. Ltd.: Cambricon Technologies Corp. Ltd. (688256.SH) is a Chinese chipmaker experiencing significant growth due to domestic AI demand and China's push for semiconductor self-sufficiency. Its Q3 revenue surged thirteenfold year-on-year to 1.7 billion yuan, with a net profit of 566.6 million yuan. The company attributes this to market expansion and rising AI demand, forecasting full-year revenue between 5 billion and 7 billion yuan. ByteDance is its largest internet client.

Nvidia Corp.: Nvidia Corp. is mentioned in the context of tightening U.S. restrictions on China's access to advanced AI processors, including high-end chips from Nvidia. This situation, coupled with Beijing's push for tech self-sufficiency, has fueled demand for homegrown alternatives in China.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is a chipmaker experiencing a surge in demand for its products. This is attributed to tightening U.S. restrictions on advanced chipmaking technologies for China and Beijing's push for technological self-sufficiency. However, the company, like others in the sector, is facing challenges in scaling up production quickly to meet this soaring demand.

ByteDance Ltd.: ByteDance Ltd., parent company of TikTok, is identified as Cambricon's largest internet client. It preordered approximately 200,000 chips from Cambricon. However, Cambricon's estimated maximum chip shipments for 2025 are only about 80,000, indicating a significant production capacity shortfall.

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