Nari Tech 1H net income 2.95B yuan

Nari Tech 1H net income 2.95B yuan

Chinese tech and electric vehicle (EV) stocks experienced a significant surge on July 2, 2025, following the unveiling of DeepSeek's upgraded V3.1 AI model and the halt in production of Nvidia's H20 AI chip. The news reflects renewed confidence in China's AI ecosystem and its push for self-sufficiency.

DeepSeek, a Chinese AI startup, announced the V3.1 model, which is designed to run on next-generation domestic chips. The model features a hybrid reasoning structure, enhancing both reasoning and non-reasoning capabilities. DeepSeek stated that the UE8M0 FP8 precision format of the V3.1 model is tailored for the upcoming domestically built chips, signaling closer integration with China's emerging AI chip ecosystem [1].

The timing of the announcement coincides with growing interest in large-scale AI models and their enterprise applications. The V3.1 model's performance has attracted attention from market analysts, who describe it as a significant leap in the AI capabilities of Chinese startups [2]. However, it faces limitations, such as lagging behind Alibaba's latest models and OpenAI's open-source reasoning model in performance, and lacking function calling in reasoning mode [2].

In a separate development, Nvidia has halted production of its H20 AI chip for China. The company instructed Amkor Technology and Samsung Electronics to suspend work on the chip, following concerns from Chinese authorities regarding information risks. This move comes as Beijing drives for AI independence and pressures firms to adopt domestic processors [3].

The halt in H20 chip production has implications for the Chinese AI market. Companies like Huawei, which have been seeking to build an alternative AI chip ecosystem, could benefit from the lack of Nvidia's H20 chips in the market [3]. The move also reflects the ongoing tension between the U.S. and China over AI technology and semiconductor exports.

Alibaba Group, Baidu, PDD Holdings, NIO, Li Auto, and XPeng climbed on the news, reflecting investor confidence in the Chinese AI ecosystem and the potential of domestic chip technology. The surge in stock prices indicates that investors are optimistic about the future of AI in China and the potential for domestic companies to lead in this sector.

References:
[1] https://www.cnbc.com/2025/08/22/deepseek-hints-latest-model-supported-by-chinas-next-generation-homegrown-ai-chips.html
[2] https://www.ainvest.com/news/deepseek-unveils-v3-1-ai-model-enhanced-reasoning-pricing-strategy-2508/
[3] https://m.economictimes.com/news/international/business/nvidia-orders-suppliers-to-halt-work-on-china-focussed-h20-ai-chip-the-information-says/articleshow/123442804.cms