Cambricon Q1: "China's Little Nvidia" Triples Profit, Stock at All-Time High

China's Cambricon Technologies, the Beijing-based AI chip maker often called "China's little Nvidia," reported on Wednesday that Q1 net profit climbed 185% year on year to 1 billion yuan ($146 million), with revenue up 160% to 2.9 billion yuan.

The market reacted hard. Shares jumped the maximum 20% daily limit on Thursday to close at CNY 1,699.96, an all-time high, beating the previous peak of CNY 1,595.88 set on August 27, 2025. Market capitalization now stands at 716.8 billion yuan ($104.9 billion).

The Details

Net profit Q1: 1 billion yuan ($146.2 million), +185% YoY

Revenue Q1: 2.9 billion yuan, +160% YoY

Operating cash flow Q1: +834 million yuan ($121.9 million), reversing a 1.4 billion yuan outflow in the same quarter last year

Cambricon attributed the swing to faster customer collections, rising compute demand from China's AI industry, stronger product positioning, and faster rollout of AI use cases.

The company posted its first annual profit in 2025 after years of state-backed losses. Q1 2026 confirms that the operating model now stands on customer revenue, not just subsidies.

Moore Threads also turned the corner

Cambricon was not alone. Moore Threads, which listed on Shanghai's STAR Market at the end of 2025, reported a Q1 profit of 29.4 million yuan ($4.3 million), reversing a 112 million yuan loss a year earlier. Revenue was up 155% to 738 million yuan. Two of China's most-watched domestic AI chip names are profitable in the same quarter, for the first time.

Why Beijing keeps winning the funding side

The earnings come as US export curbs continue to bite. According to Bloomberg, the price of Nvidia's flagship B300 server in the Chinese gray market has been pushed to about 7 million yuan (~$1 million) per unit on tightening restrictions.

Every dollar the gray market spends on Nvidia is a dollar Cambricon, Moore Threads, Hygon, and Huawei Ascend can compete for. The Q1 numbers suggest that the substitution is no longer a thesis. It is an income statement.

Sources: Yicai Global, Business Times SG