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Cambricon Becomes China’s Priciest Stock on Blowout Half-Year Results

Blowout earnings plus optimism around local AI models fuel bets on domestic accelerators.

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Overview

  • Cambricon reported first-half 2025 revenue of 2.88 billion yuan, up 4,348% year on year, with net profit reaching 1.04 billion yuan after a prior-year loss.
  • Shares extended gains on Wednesday to around 1,408.9 yuan, cementing Cambricon as the highest-priced stock on the mainland and valuing it near $80 billion.
  • Investor enthusiasm has been reinforced by DeepSeek’s V3.1 update indicating training formats suitable for home-grown chips, boosting confidence in local hardware.
  • Analysts note valuation extremes, with reports citing a trailing multiple above 4,000 times earnings, even as most broker coverage maintains buy ratings and bullish targets.
  • Coverage emphasizes that Chinese contenders still lag Nvidia technologically and face export-control and manufacturing constraints despite rapid commercial progress.