Cambricon Technologies, a leading Chinese AI chip designer, has experienced remarkable growth in 2024, outperforming even global giants like Nvidia and TSMC. This surge is fueled by China’s ambitious push for self-reliance in artificial intelligence and the increasing demand for domestically produced technology.
China’s commitment to technological independence, particularly in the face of US trade restrictions, has spurred investor confidence in domestic tech companies like Cambricon. The company’s stock price has soared by an impressive 383% this year, making it the top performer on the CSI 300 Index and propelling its market capitalization to $37 billion. Further boosting its profile, Cambricon’s recent inclusion in the Shanghai Stock Exchange 50 Index is expected to attract additional investment from funds tracking this large-cap benchmark.
Analysts at Minsheng Securities highlight the significant trend of AI chip localization, emphasizing that leading Chinese manufacturers like Huawei and Cambricon are rapidly closing the gap with international competitors in terms of product capabilities. This domestic focus aligns with China’s broader strategy to reduce reliance on foreign technology and establish itself as a leader in key industries like artificial intelligence.
Despite being founded only in 2016 and still operating at a loss, Cambricon has witnessed a dramatic surge in demand. Sales skyrocketed by over 280% in the third quarter compared to the same period last year, indicating strong growth momentum. This rapid expansion underscores the growing need for domestic AI chips within China’s burgeoning tech sector.
Citigroup analysts predict significant growth in the localization of graphics processing units (GPUs) in 2025. They anticipate Nvidia’s market share, currently exceeding 80%, to shrink to 50%-60%. Huawei is projected to be the primary beneficiary of this shift, followed by Cambricon, solidifying the position of Chinese companies in the global AI landscape.
Cambricon’s success story mirrors the broader trend of strong performance among companies contributing to China’s technological self-sufficiency. Other notable examples include optical module maker Eoptolink Technology and data provider Range Intelligent Computing Technology, both of which saw their stock prices more than double this year. An index tracking AI-related stocks climbed 26%, surpassing the CSI 300’s 16% gain, demonstrating the robust growth of this sector.
This surge in domestic technology investment reflects China’s strategic priorities and highlights the significant opportunities for companies like Cambricon that are at the forefront of innovation in critical sectors like artificial intelligence. As China continues its push for technological independence, Cambricon is well-positioned to capitalize on the growing demand for homegrown AI solutions. The company’s remarkable performance in 2024 signals a promising future, driven by the ongoing national drive for self-sufficiency in artificial intelligence and the company’s commitment to cutting-edge technology.
