Details
📈 Record Numbers: Cambricon boosted revenue in the first half by 4,000% to CNY 2.9 billion (USD 403 million) and posted a net profit of CNY 1.04 billion – after a loss last year.
💰 Market Value: The company’s market cap has doubled to around USD 80 billion, fueled by investors betting on domestic AI hardware.
🇨🇳 Political Backing: Beijing is pushing tech giants like ByteDance and Tencent to replace Nvidia chips with local alternatives.
⚙️ Tech Gap: Despite progress, Cambricon still lags far behind Nvidia, which generated USD 44 billion in a single quarter.
📊 Industry Context: Chinese chip stocks rallied after DeepSeek unveiled a new AI model running on domestic hardware.
Big Picture
Cambricon is riding Beijing’s tech-resilience strategy: the government is shoring up local suppliers to cut dependence on U.S. hardware. For investors, the surge underscores how high semiconductors rank as a political priority in China – even if the technology gap with Nvidia remains wide.
The China Survival Guide for Western Businesses
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