- The Cambricon Market Value reflects the hopes of investors for the Chinese National Hardware Ecosystem
- The rapid growth of income reveals the company’s financial change after years of losses
- A great dependence on a client and geopolitical restrictions raise doubts about its long -term sustainability
Cambricon Technologies has quickly become one of the most followed names in the Chinese semiconductor industry.
Beijing’s chips designer has seen that the price of his shares is recently triggered, at one time gaining a market value above RMB580 billion, approximately $ 81.2 billion.
That puts it ahead of the tastes of MediaTak and SMIC, which is very unusual for a company whose annual income is still many of its international rivals.
Inevitable questions
Founded by the brothers Chen Tianshi and Chen Yunji in 2016, Cambricon has focused on the development of processors adapted to artificial intelligence.
Its SIYUAN products line has evolved quickly, with the 590 chip it is said that it reaches approximately 80% of the NVIDIA A100 performance while being built in a national process of 7 Nm.
A follow -up model, Siyuan 690, is expected to be placed against the NVIDIA H100.
The company’s financial change has certainly been fast. It generated RMB28.81 billion (approximately $ 4.03 billion) in revenue in the first half of 2025, which is more than 40 times the figure of the previous year.
Profitability has also improved, with RMB1,038 billion (around $ 145 million) in the net income registered during the same period, after years of losses.
For many investors, this has strengthened the opinion that Cambricon could form a central pillar in China’s efforts to build an national AI hardware ecosystem.
However, questions about how lasting is this growth, with many observers of the market wise asking questions, reminding me of what happened with Coreweave not long ago.
Almost all Cambricon revenues come from cloud chips used in the training of large -scale AI models, and most of its sales are linked to a handful of customers.
According to reports, its biggest client, without a name but is believed to be an important cloud supplier, contributes most of the income. Any change in spending by that client and Cambricon profits could be established.
Change also faces geopolitical pressures. It was placed on the black list of Washington in 2022, which restricts access to foreign suppliers, which forces it to trust local foundations, since access to TMSC is also blocked.
Huawei and others are pressing AI hardware alternatives that could gain market share to the detriment of Cambricon.
If Cambricon can maintain the impulse will depend on expanding its customer base, ensuring reliable production and navigating a highly disputed domestic market.
Through Trending force
