Chinese AI chipmaker Cambricon Technologies has posted a staggering 4,300% revenue surge in the first half of 2025, marking one of the most dramatic turnarounds in the global semiconductor industry this year.
The company, often dubbed “China’s Nvidia,” swung to profitability and fueled a stock market rally that has lifted its market capitalization to nearly 580 billion yuan (≈ US $80–90 billion).
Revenue Explosion and First Profits
Cambricon reported 2.88 billion yuan (≈ US $404 million) in revenue for H1 2025, compared with just 64 million yuan a year earlier.
The company also swung to a net profit of 1 billion yuan (≈ US $140 million), reversing a 533 million yuan loss in the same period of 2024.
Industry analysts credit the surge to China’s escalating demand for homegrown AI chips, particularly as Beijing accelerates its push for technological self-reliance amid U.S. export restrictions on advanced processors.
Market Rally Adds Billions in Value
Cambricon’s stock has more than doubled in the past month, adding tens of billions of dollars in market value.
The rally comes amid a broader boom in Chinese semiconductor shares, driven by the success of DeepSeek, a Chinese AI model that showcased the competitive potential of domestic chips in generative AI tasks.
At its current valuation, Cambricon is now among the most valuable chip firms in Asia, although still a fraction of Nvidia’s US $2.5 trillion market cap.
Beijing’s Push for Chip Sovereignty
China has been aggressively backing firms like Cambricon, Huawei, and Biren Technology to reduce dependence on U.S.-made GPUs.
State-backed funding and policy support have enabled Cambricon to ramp up production capacity and secure contracts with leading Chinese cloud and AI firms.
According to local reports, the company has landed deals with Alibaba’s cloud unit, Baidu, and several state-owned enterprises eager to replace Nvidia chips with Chinese alternatives.
Risks Remain Despite Breakout
While the growth is impressive, analysts warn that Cambricon faces significant challenges, including:
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Technology gap – Nvidia still leads in cutting-edge GPUs, particularly in AI training.
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Global restrictions – U.S. sanctions limit Cambricon’s access to advanced manufacturing tools and foundries.
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Profit sustainability – The one-off spike from AI demand may not be easily repeatable without continued innovation.
Despite these hurdles, investor sentiment remains overwhelmingly bullish. The combination of explosive revenue growth, first-ever profitability, and geopolitical tailwinds has positioned Cambricon as a flagship of China’s semiconductor ambitions.
Bottom Line
Cambricon’s meteoric rise in 2025 underscores the geopolitical and economic stakes in the AI chip race.
With a market cap nearing US $90 billion and revenue growth topping 4,000%, the company has emerged as China’s strongest challenger to Nvidia’s dominance.
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