Key Points
- Cambricon’s Meteoric Rise: On August 22, 2025, Cambricon’s stock surged by ¥86.6 billion RMB ($11.9 billion USD) in a single day, reaching a market cap of ¥520.1 billion RMB ($71.5 billion USD) and becoming the #1 semiconductor company in China by market cap.
- “Thousand-Yuan” Stock Status: Cambricon became the second “thousand-yuan” stock in the market, a title previously held only by Kweichow Moutai (Guizhou Maotai 贵州茅台). The stock is up over 130% in the past month and 26 times from its previous low over three years.
- Fueling the Growth: The company’s revenue in Q1 2025 surged to ¥1.11 billion RMB ($153 million USD), a 42x increase year-over-year, with Q1 net profit reaching ¥360 million RMB ($49.5 million USD), up 257% year-over-year. Strategic capital increases and industry signals, like DeepSeek’s new model designed for “upcoming next-generation domestic chips,” are also contributing.
- Indigenous Innovation and Re-rating: Cambricon’s success is part of a broader trend of China’s aggressive push for technological self-reliance amidst US-China competition. Experts predict a “systemic re-rating” of Chinese tech assets as indigenous innovation thrives.
The Chinese AI chip giant Cambricon (Hanwuji 寒武纪) just had a monster day on the market, and it’s a massive signal for the future of global tech and semiconductor leadership.
On August 22, 2025, the company’s stock went absolutely parabolic, cementing its status as “King Cambricon” and creating ripples across the entire industry.
“King Cambricon” Just Became the Second “Thousand-Yuan” Stock
Let’s break down the wild numbers from Cambricon’s epic trading day.
On August 22, the stock didn’t just climb; it soared.
- It hit a 20% “limit-up” in the final hours of trading and held it until the market closed.
- Its market cap surged by a mind-blowing ¥86.6 billion RMB ($11.9 billion USD) in a single day.
- The stock closed at a new record high of ¥1243.2 RMB ($171 USD) per share.
- Total market cap blew past the ¥500 billion RMB ($68.8 billion USD) mark, settling at ¥520.1 billion RMB ($71.5 billion USD).
- This surge officially made Cambricon the #1 company in the semiconductor industry by market cap, overtaking SMIC (Zhongxin Guoji 中芯国际).
This puts Cambricon (Hanwuji 寒武纪) in truly elite territory.
It’s now the second “thousand-yuan” stock on the market, a title it shares only with the legendary liquor brand Kweichow Moutai (Guizhou Maotai 贵州茅台).
To say the stock is on a hot streak is an understatement.
Year-to-date, Cambricon is up over 88%.
Even more impressively, it has gained over 130% in just the past month.
Looking back three years, the stock has soared an incredible 26 times from its previous low.
The Entire Chip Sector is on Fire
Cambricon didn’t rise alone. It led a massive rally in the chip sector as the Shanghai Composite Index broke through 3800 points, a new ten-year high.
Here’s a quick look at the market leaders riding the wave:
- Jingyi Equipment (Jingyi Zhuangbei 京仪装备) and SMIC (Zhongxin Guoji 中芯国际): Up over 14%
- Jeffwatt (Jiehua Te 杰华特): Up nearly 14%
- Piotech (Xinyuanwei 芯源微) and Tianzhun Technology (Tianzhun Keji 天准科技): Up over 11%
- Jinbo Holding Group (Jinbo Gufen 金博股份) and Jingjia Micro (Jingjiawei 景嘉微): Up over 10%
Thematic ETFs also rocketed, with STAR Market 50 ETFs from Fuguo, Eastmoney, and others gaining over 10%.
This widespread rally signals massive investor confidence in China’s domestic tech and semiconductor industries.
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- Jingyi Equipment (Jingyi Zhuangbei 京仪装备): Up over 14%
- SMIC (Zhongxin Guoji 中芯国际): Up over 14%
- Jeffwatt (Jiehua Te 杰华特): Up nearly 14%
- Piotech (Xinyuanwei 芯源微): Up over 11%
- Tianzhun Technology (Tianzhun Keji 天准科技): Up over 11%
- Jinbo Holding Group (Jinbo Gufen 金博股份): Up over 10%
- Jingjia Micro (Jingjiawei 景嘉微): Up over 10%
What’s Fueling the Fire? Performance, Capital, and AI Tailwinds
So, why the sudden, explosive growth?
It’s not just hype. It’s a combination of killer financial performance, strategic capital moves, and powerful industry trends.
Jaw-Dropping Financials
Founded in 2016, Cambricon focuses on R&D for core AI processor chips.
And its fundamentals are finally catching up to the vision.
- 2024 Full-Year Revenue: Hit ¥1.17 billion RMB ($161 million USD), a year-over-year jump of 65.56%.
- Q1 2025 Revenue: Surged to ¥1.11 billion RMB ($153 million USD). That’s a 42x increase year-over-year and a 12% sequential increase.
- Q1 2025 Net Profit: Reached ¥360 million RMB ($49.5 million USD), representing a 257% year-over-year increase and a 32% sequential increase.
These aren’t just good numbers; they’re the kind of hyper-growth figures that get investors to sit up and pay attention.
Fresh Capital Injection and Industry Signals
Cambricon is also making strategic moves behind the scenes.
According to data from Tianyancha (Tianyancha 天眼查), its subsidiary, Shanghai Cambricon Information Technology Co., Ltd. (Shanghai Hanwuji Xinxi Keji Youxian Gongsi 上海寒武纪信息科技有限公司), recently upped its registered capital from ¥2.6 billion RMB ($357 million USD) to ¥2.7 billion RMB ($371 million USD).
This move, while seemingly small, signals confidence and a scaling of operations.
On top of that, major industry news is adding fuel to the fire.
On August 21, the AI research firm DeepSeek announced its new V3.1 model uses a parameter precision (UE8M0 FP8) specifically designed for the “upcoming next-generation domestic chips.”
This is a huge vote of confidence, signaling that China’s homegrown AI software is being built in tandem with its homegrown hardware.
As Southern Fund noted, this move “further affirms the robust progress of domestic chip design in achieving self-reliance and domestic substitution.”
The Bigger Picture: Indigenous Innovation is Reshaping Tech Valuations
This isn’t just about one company’s hot streak.
It’s about a tectonic shift in the global tech landscape, driven by US-China competition and a massive push for technological self-reliance.
As one fund manager with a large Cambricon holding put it, “In the context of supply constraints due to US-China technological competition, the demand for domestic AI chip alternatives is urgent.“
While there are several domestic AI chip players, Cambricon is one of the few publicly listed ones with a leading position and deep ties to China’s internet giants and computing centers.
This perfectly positions them to capture the demand for domestic substitution.
The Noah Fund (Nuo’an Jijin 诺安基金) technology team believes we’re at an inflection point.
They note that since 2018, Chinese manufacturers have fully embraced the domestic chip industry, sparking explosive growth.
The success of native innovators like DeepSeek validates this push.
Noah Fund predicts that core, “world-changing” innovations will now “emerge in China like mushrooms after rain.”
Their take: “This will alter the global market’s expectations for Chinese tech assets, and the valuation of Chinese tech assets is expected to undergo a systemic re-rating.”
Analysts from Zheshang Securities (Zheshang Zhengquan 浙商证券) and CITIC Securities (Zhongxin Zhengquan 中信证券) agree, pointing out that export controls are compelling the rise of indigenous innovation, and AI will continue to be the primary growth driver for the semiconductor industry.
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The Takeaway
Cambricon’s surge is more than just a stock market headline.
It’s a clear indicator of China’s aggressive, and increasingly successful, push for technological self-reliance.
As investors re-evaluate what’s possible within China’s tech ecosystem, they’re willing to give high valuations to companies with clear technological advantages, even if their full performance hasn’t been realized yet.
They’re betting on the future. And right now, the future looks a lot like companies leading the domestic substitution charge, like Cambricon (Hanwuji 寒武纪).
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