Cambricon Technologies (688256.SH) reported H1 results with revenue of RMB 2.881 billion (up about 43x year over year) and net income attributable to shareholders of RMB 1.038 billion, swinging to profit. The print sparked a powerful rally: shares spiked intraday and briefly traded above Kweichow Moutai’s share price, momentarily becoming China’s “share-price king.” Market cap and turnover jumped in tandem as narratives around AI compute and domestic substitution reignited.

Blowout Results: +4,348% YoY Revenue; Profit and Operating Cash Flow Turn Positive

For the first half, revenue reached RMB 2.881 billion (+4,347.82% YoY); attributable net profit was RMB 1.038 billion; and net operating cash flow was RMB 911 million, all flipping from negative to positive. The report effectively reset expectations on Cambricon’s commercialization pace and delivery capability.

International media also highlighted this inflection: fueled by domestic demand from large models and inference scenarios, revenue scaled sharply and semiannual profit exceeded RMB 1 billion for the first time—evidence that Chinese AI chips are penetrating the application layer as training and inference decouple.

Nearly a Double in a Month; Intraday Price Briefly Surpassed Kweichow Moutai

Following the release, Cambricon’s shares rallied on heavy volume, hitting an intraday high of RMB 1,464.98 per share and, at one point, trading above Kweichow Moutai, briefly taking the crown as China’s “share-price king.” Gains later narrowed, but turnover and activity stayed elevated. Over the past month, the stock has nearly doubled, with valuation and momentum reinforcing each other and making it one of the strongest risk-on proxies in the market.

Related chip ETFs also advanced notably, reflecting how the earnings surprise pulled index-style allocations across the supply chain.

What’s Driving It: Policy Tailwinds and Post-DeepSeek Demand

Multiple forces underpin the fundamental breakout: (1) policy directives emphasizing self-reliance are accelerating adoption of domestic chips by major internet and AI firms, releasing structural orders; (2) in the post-DeepSeek era, model compatibility on Chinese hardware has improved, boosting inference-side usability and speeding up commercialization; (3) Cambricon’s progress in the software stack and ecosystem has reduced switching and deployment frictions for customers.

Reports also note that as Chinese AI-chip choices expand, Cambricon offers a differentiated option alongside—rather than within—Huawei’s ecosystem, enlarging its potential customer pool.

Valuation and Risks

While sentiment-fundamental feedback has driven a rapid re-rating, debates around quality and durability of growth are intensifying. Institutions and industry consultants flag three areas: stability of order mix and delivery cadence; the impact of capacity ramp-up and supply-chain bottlenecks on revenue recognition; and how Cambricon’s ecosystem position and competition (including Huawei and the pace of GPU substitution) shape medium- to long-term share.

Commentators also point to inventory and cash-flow details, urging attention to turnover efficiency and margin elasticity even in up-cycles to avoid a “high-growth but low-quality” mismatch.

How to Buy Cambricon Technologies on uSMART

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