Cambricon Technologies Corp., China’s best-performing stock in 2024, has more than doubled from a July low as momentum builds around the country’s push for semiconductor self-sufficiency.
Shares of the AI chip maker soared as much as 20% on Friday, fueled by a report that Nvidia Corp. had asked suppliers to halt production related to its H20 chips. That intensified investor bets on Chinese AI chipmakers that would be expected to serve as alternative suppliers. The Shanghai-listed stock has gained about 125% since the July 10 low, making it the top performer on the benchmark CSI 300 index in the period.
“If H20 production is halted, it means China’s chip demand will still have to rely on homemade semiconductors for now,” said Bloomberg Intelligence strategist Marvin Chen. “Despite relaxation of US chip controls, security concerns may still push China to accelerate self-sufficiency in highly sensitive sectors such as tech.”
Recent reports that Chinese authorities advised local firms to avoid Nvidia’s H20 chips have lifted sentiment toward domestic chipmakers amid rising geopolitical uncertainty and supply-chain reshuffling. Meanwhile, the rise of domestic AI models like DeepSeek has further fueled demand for local semiconductor solutions. Cambricon announced a 4 billion yuan private placement in July to fund its large-model chip platform.
Other Chinese chip stocks also advanced Friday, with Hua Hong Semiconductor shares rising as much as 13% and Shanghai Fudan Microelectronics gaining 8.2% in Hong Kong. On the mainland, Hygon Information Technology surged 19%. The SSE Science and Technology Innovation Board 50 Index, or Star50, rose more than 8% on Friday, the most since October last year, on the back of gains from Cambricon, Hygon and ACM Research Shanghai Inc.
Cambricon’s recent surge has sent its share price above 1,200 yuan, making it the second-highest-priced stock in China’s A-share market, trailing only Kweichow Moutai Co.
With assistance from Sangmi Cha.
This article was generated from an automated news agency feed without modifications to text.
