Cambricon shares in A-shares plunged, with losses widening to over 6%

Cambricon shares in A-shares plunged, with losses widening to over 6%

Cambricon Technologies Corp (688256) saw its shares plunge on Monday, with losses widening to over 6% on the Shanghai Stock Exchange. The stock closed at 1,420 yuan, marking its biggest one-day percentage drop since debuting in July 2020 [2]. This significant decline follows a 16.3% jump in the previous session to an all-time high of 1,595.88 yuan, which was then followed by a 15.7% increase to close the day at 1,834.88 yuan [2].

The stock's volatility can be attributed to a risk alert issued by Cambricon on Thursday, which cited a 133.9% surge in its stock price between July 28 and August 28. The company warned investors about the risks associated with excessive speculation and highlighted its vulnerability to supply chain disruptions due to US export restrictions [1]. Additionally, Cambricon stated that it has no plans to launch any new products, which may have contributed to the recent sell-off [2].

The broader market context also played a role in Cambricon's stock performance. While the blue-chip CSI 300 Index and the Shanghai Composite Index saw modest gains, the China's chipmaking index fell by 4.2% [2]. Year-to-date, Cambricon's stock has seen a substantial increase of 122.9% [2].

Cambricon's shares have been at the center of heightened speculation, with Goldman Sachs raising its 12-month target price to 2,104 yuan (US$295) [1]. However, the company's stock price has been diverging from these bullish forecasts, reflecting a high divergence of sentiment among investors.

The recent developments underscore the importance of thorough due diligence and risk management in investing. Cambricon's stock volatility highlights the need for investors to stay informed about the company's fundamentals and the broader market dynamics.

References:
[1] https://finance.yahoo.com/news/chip-designer-cambricon-chinas-little-093000462.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UL051:0-cambricon-drops-after-alerting-investors-of-risks-following-stock-rally/