Cambrian Breakthrough: China's AI Chip Industry's New Leader

The recent stock performance of China's AI chip company Cambrian has attracted attention, as it has not only surpassed Kweichow Moutai to become the new king of A-shares with its groundbreaking technological achievements and performance growth, but its market capitalization has also surpassed that of Taiwan's IC design leader MediaTek, indicating that China's AI chip industry is rapidly rising.

Market capitalization breakthrough: A growth curve that sets a new historical high

On August 28, Cambrian closed at a price of RMB 1587.91, setting a new historical high, with a market capitalization rising to RMB 664.3 billion, approximately NT$ 2.83 trillion. This figure has surpassed MediaTek's market capitalization of NT$ 2.2 trillion and is closer to Hon Hai's NT$ 2.86 trillion. From a technical analysis perspective, Cambrian demonstrates a rare rise in speed:

• From the low point of 520 yuan on July 10, 2023, the stock price has risen nearly 200% in less than two months.
• If we calculate from the 54 yuan in January 2023, the stock price has risen nearly 3000%.

Performance Explosion: Market Validation of Technical Strength

The significant rise behind the Cambrian period is supported by solid performance. According to the latest financial report:

• Revenue in the first half of the year reached RMB 2.881 billion, a year-on-year rise of 4300%.
• Net profit reached RMB 1.038 billion, compared to a loss of RMB 530 million in the same period last year.
• Earnings per share reached 2.5 yuan, with financial performance turning positive across the board.

Notably, the Cambrian cloud product line contributed 99.6% of the revenue, reaching RMB 2.87 billion, which fully reflects the strong demand for high-performance computing chips in the era of AI large models.

Technical Advantages: Accelerator for Domestic Substitution

The market's comparison of Cambrian with Nvidia is not without basis. Against the backdrop of the continuous restrictions on the import of advanced chips from China by the United States, Cambrian has become a key supplier of AI computing power demand in China.

• The Cambrian AI Accelerator demonstrates stable performance in large model training and inference scenarios.
• Market news shows that ByteDance is making a large purchase from Cambrian.
• Domestic AI model developers such as DeepSeek are conducting deep adaptation with Cambrian chips.

It is noteworthy that the security issues surrounding NVIDIA's H20 chip have actually accelerated Cambricon's market penetration. This trend of domestic substitution has created vast development space for the company.

Capital Recognition: Foreign Institutions Optimistic About Prospects

Professional financial institutions hold an optimistic view on the prospects of Cambrian, with firms like Goldman Sachs raising their target price to RMB 1835. This recognition reflects not only short-term trading opportunities but also affirms the company's long-term technological strength.

The Cambrian period has recently been included in important indices such as the Shanghai Stock Exchange 50 and the STAR Market 50, leading to a continuous inflow of passive funds into ETFs, providing additional support for stock prices.

Industry Landscape: Technical Competition and Window of Opportunity Challenges

The 40-year-old chairman of Cambrian, Chen Tianshi, currently holds 28.63% of the company's shares, with a market capitalization exceeding RMB 190.2 billion. However, market competition is also intensifying:

• There are at least 6 chip companies in China waiting to go public.
• Cambrian has a limited time window to secure its market position before competitors go public.
• The current high price-to-earnings ratio valuation requires sustained strong earnings growth to be supported.

Significance in the Industry: Milestone of China's AI Technology

The rise of the Cambrian period represents an important historical moment for China's AI industry. According to industry analysis, Taiwan's IC design industry is expected to grow at a compound annual growth rate of 8.55% between 2025 and 2030, reaching a market size of 59.7 billion USD by 2030.

In the global semiconductor supply chain landscape, the success of Cambrian marks a significant improvement in China's AI chip design capabilities, and reflects the importance of technological self-innovation in the face of geopolitical challenges.

As AI technology further penetrates various industry application scenarios, whether Cambrian's technological route and market strategy can maintain its lead will be a key factor in determining its long-term competitiveness, and is worthy of close attention from investors.