- Cambricon’s market value reflects the hopes of investors for the ecosystem of the interior IA equipment of China
- The rapid growth of income reveals the financial reversal of the company after years of losses
- The high dependence on a client and geopolitical restrictions raise doubts about its long -term sustainability
Cambconne Technologies quickly became one of the most closely followed names in the Chinese semiconductor industry.
The Beijing -based flea designer recently saw its course in action soar, which has gained market value more than 580 billion RMB, or $ 81.2 billion.
This highlights Mediatek and Smic, which is very unusual for a company whose annual income still drags many of its international rivals.
Inevitable questions
Founded by the Chen Tianshi and Chen Yunji brothers in 2016, Cambcon focused on the development of processors adapted to artificial intelligence.
Its range of Siyuan products has evolved quickly, with the Siyuan 590 chip which reaches approximately 80% of the performance of the NVIDIA A100 while being built on a national process of 7 Nm.
A follow -up model, the Siyuan 690, should be positioned against the Nvidia H100.
The company’s financial turnaround was certainly fast. It generated 28.81 billion RMB (approximately $ 4.03 billion) of income in the first half of 2025, more than 40 times the figure a year earlier.
Profitability has also improved, with 1.038 billion RMB (approximately $ 145 million) in net profit recorded over the same period, over years of loss.
For many investors, this has strengthened the opinion that Cambcon could form a central pillar in China’s efforts to build a material ia material ecosystem.
However, questions remain on how this growth is sustainable, many market observers judiciously raising questions, reminding me of what happened with Coreweave not so long ago.
Almost all Cambricon’s revenues come from the cloud chips used in the formation of large -scale AI models, and most of its sales are linked to a handful of customers.
Its biggest client, without name but which would be a large cloud supplier, contributes would have most of the income. Any change of expenses by this client and Cambricon’s revenues could tank.
CAMBROCON also faces geopolitical pressures. It was placed on the Washington commercial black list in 2022, which restricted access to foreign suppliers, forcing it to rely on local foundries because access to TMSC is also blocked.
Huawei and others all push AI material alternatives which could gain market share at the expense of Cambcon.
The question of knowing if Cambcon can maintain the momentum will depend on the expansion of its customers, the securing of reliable production and navigation on a highly contested internal market.
Via Tendency
