Rapid Valuation and Financial Turnaround

Cambricon Technologies has become one of the most closely watched names in China’s semiconductor sector. Its market value has climbed above RMB580 billion (approximately $81.2 billion), a level that surpasses peers such as MediaTek and SMIC despite still trailing many international rivals in annual revenue. The company’s revenue in the first half of 2025 reached RMB28.81 billion, more than 40 times the figure a year earlier, and it posted a net income of RMB1.038 billion, marking a clear shift from years of losses.

The company’s flagship Siyuan product line has evolved quickly. The Siyuan 590 chip is claimed to achieve about 80% of the performance of Nvidia’s A100 while being built on a domestic 7 nm process, and the upcoming Siyuan 690 is positioned against Nvidia’s H100.

Customer Concentration Risks

Nearly all of Cambricon’s revenue comes from cloud chips used to train large‑scale AI models, and most sales are tied to a handful of customers. Its largest client, an unnamed major cloud provider, contributes the bulk of revenue. Any change in spending by that customer could significantly impact Cambricon’s earnings.

Geopolitical Challenges

Cambricon was placed on Washington’s trade blacklist in 2022, restricting access to overseas suppliers and forcing reliance on local foundries, as access to TSMC is also blocked. Competitors such as Huawei are pushing alternative AI hardware that could erode Cambricon’s market share.

Outlook

Cambricon’s momentum will depend on widening its customer base, securing reliable production, and navigating a highly contested domestic market. While the rapid revenue growth and profitability suggest strong potential, the concentration of revenue and geopolitical constraints raise questions about the durability of its ascent.

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