A-share Cambricon rises over 4%, trading volume tops 12 billion yuan

A-share Cambricon rises over 4%, trading volume tops 12 billion yuan

In a significant market movement on July 2, 2025, Cambricon Technologies, a leading AI chip designer, saw its shares rise by over 4% on the Shanghai Stock Exchange. The stock, represented by the ticker 688256.SS, traded at a volume exceeding 12 billion yuan, marking a substantial increase in trading activity [2].

Cambricon's stock performance has been notable for its robust growth, with a year-to-date return of 129.28%, significantly outperforming the SSE Composite Index's 15.31% return [2]. The company has also shown impressive long-term performance, with a 1-year return of 498.34%, a 3-year return of 1,767.62%, and a 5-year return of 799.30% [2].

The recent rise in Cambricon's stock price can be attributed to various factors. One key factor is the heightened speculation surrounding the company's potential to unseat Nvidia as China's top AI chip supplier. Goldman Sachs has raised its 12-month target price on the stock to 2,104 yuan (US$295) [1]. Additionally, supportive government policies and increased AI infrastructure capital spending by major tech companies like Alibaba and Tencent Holdings have bolstered the growth prospects of local suppliers of chips, servers, and AI solutions [1].

Despite the bullish forecasts, Cambricon's share price has seen some volatility. The stock has declined for two consecutive trading days, reflecting a divergence in market sentiment. The company has also warned about excessive speculation in its shares, highlighting the risks associated with supply chain vulnerabilities due to US export restrictions [1].

Cambricon's strong performance is also evident in its financial results. The company reported a 4,348% year-on-year surge in revenue to 2.88 billion yuan (US$403.8 million) in the first six months of 2025, a record high since it went public in 2020 [1]. This significant revenue growth suggests that the company may achieve its first full-year profit in 2025 [1].

In conclusion, Cambricon Technologies' stock performance on July 2, 2025, reflects a combination of market anticipation, supportive government policies, and robust financial results. While the stock has shown considerable volatility, its long-term growth prospects remain promising.

References:
[1] https://finance.yahoo.com/news/chip-designer-cambricon-chinas-little-093000462.html
[2] https://finance.yahoo.com/quote/688256.SS/