Cambricon stock mania, the hottest topic of the Chinese AI chip sector. The stock’s meteoric ascent has earned it Wall Street attention that Goldman Sachs is doubling down on bullishly. But behind the euphoria, there are serious risks.
Once shunned as the “king of losses,” Cambricon Technologies, or Hanwuji as the company is locally known, has rewritten its narrative. The company turned around after repeatedly losing nearly 5 billion yuan ($970 million) since its founding, after the US slapped licensing restrictions on sales of NVIDIA and AMD GPUs to China in 2024. This abrupt policy turn gave opportunities to domestic chipmakers and Cambricon has seen its stock skyrocket ever since.
A Turnaround Powered by the AI Craze
In the first half of 2025, Cambricon’s revenue had surged 4,348 percentJump to $402 million, spawning an investing frenzy in the stock market. Investors have returned the favor for that hyper-growth, sending the stock of Cambricon soaring by 130% in two weeks. The company is now worth more than $90 billion by market value, close to 70 percent of SK Hynix’s total value, despite having revenue that is a mere fraction of the South Korean giant’s.
Goldman Sachs is paying attention, upping their Cambricon stock price target for the second time in the past two weeks to 2104 RMB. The bank projects shipments of 14.5 million units of Cambricon’s custom AI chips in 2025, and expects volumes to top 45 million in 2030.
Cambricon’s Siyuan 590: China’s Retort to NVIDIA
The Siyuan 590, a newiness AI chip, is featured in a big way in bullish arguments for Cambricon stock. Closely matching NVIDIA’s A100 GPU at nearly 90 percent of the performance (with a TPP of 4,493 compared to 4,992), the Siyuan 590 has become a linchpin in China’s AI hardware ecosystem. For a lot of domestic firms shackled by US export bans, Cambricon’s chips are a critically useful alternative.
Risks That May Derail Cambricon Stock
Yet for all the frenzy, Cambricon stock comes with substantial risks. Some 80 percent of the company’s revenue is derived from ByteDance, giving it a chronic customer concentration problem. A retreat by ByteDance could deal a major blow to revenues.
Competition is another pressing threat. With solid fundings and strong R&D, Huawei and Alibaba are vowing to go all out in developing their own AI chips. Cambricon could well have a hard time keeping any edge against such well-capitalized rivals.
Can Cambricon Stock Keep Rising?
Goldman Sachs retains bullish views as of now, noting that there is further upside as AI enablers proliferate in China. But analysts caution that Cambricon stock is being valued as if a bubble is in the works, with its market capitalization well above its fundamentals. “Courtesy TPG” Its future direction probably depends on its ability to widen its customer base and fend off competition.
FAQ
Cambricon stock jumps in China on surging demand for AI chips in the country, which was driven by US restrictions on NVIDIA and AMD and multiple target raises at Goldman Sachs.
NVIDIA’s A100 GPU will see about 90% of the performance capabilities from the Siyuan 590 and present a formidable homegrown option for local Chinese companies.
Risks are centred around a heavy revenue dependence on ByteDance and competition with Huawei and Alibaba in the AI GPU market.
Cambricon stock, which as of mid-2025 has pushed the company to above a $90 billion market capitalization.
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