Cambricon Stock Hits New All-Time High as Market Cap Surpasses 670 Billion Yuan

Cambricon Stock Surges to New All-Time High

On July 15, domestic AI chip leader Cambricon (688256.SH) surged strongly during intraday trading, with gains exceeding 12% at one point. The stock set a new all-time high, pushing its total market capitalization past the 670 billion yuan mark. The performance once again underscores the capital market's strong confidence in the domestic AI computing power sector.

Multiple Tailwinds Driving the Stock Rally

Cambricon's latest rally has been fueled by a confluence of favorable factors.

First, demand for domestic AI computing power continues to surge. As China's large language model industry enters the stage of large-scale commercialization, demand for AI inference and training computing power has skyrocketed — from internet giants to enterprises across various industries. Against the backdrop of uncertainties in international supply chains, the strategic value of domestic AI chips has been further amplified. As the purest AI chip play on the A-share market, Cambricon has naturally become a focal point for capital inflows.

Second, policy signals remain strongly supportive. National-level authorities have repeatedly emphasized accelerating AI infrastructure development and advancing the R&D and deployment of domestically produced computing chips. Local governments have also been rolling out AI industry support policies in quick succession, explicitly encouraging the procurement of domestic AI chips — opening up vast market opportunities for companies like Cambricon.

Additionally, Cambricon's own product iteration is accelerating. The company's Siyuan (MLU) series chips have achieved batch deployment in cloud-based inference and intelligent computing center scenarios. Its ecosystem of partners continues to expand, product competitiveness is steadily improving, and expectations for fundamental improvements are growing.

Valuation Debate Behind the 670 Billion Yuan Market Cap

Notably, despite Cambricon's stock repeatedly hitting new highs, debate around its valuation has never ceased. From a financial perspective, Cambricon has yet to achieve sustained profitability, and there remains a significant gap between its revenue scale and its massive market capitalization. Market bulls argue that Cambricon's valuation largely reflects the "scarcity premium" of the domestic AI chip sector and its future growth potential. They contend that the industry is on the eve of an explosive breakout and should not be measured by traditional valuation frameworks.

Cautious observers, however, warn that competition in the AI chip sector is intensifying. Huawei's HiSilicon Ascend series continues to gain momentum, and multiple chip startups are also accelerating their efforts to close the gap. Whether Cambricon can maintain its leading position in technological iteration and market expansion still requires time to verify.

Bright Prospects for the Domestic AI Chip Sector

From a broader perspective, Cambricon's sustained stock strength is a microcosm of the rising prosperity across the entire domestic AI computing power supply chain. According to forecasts from multiple institutions, China's AI chip market is expected to surpass the 100-billion-yuan level within the next three to five years, with intelligent computing center construction, edge-side AI deployment, autonomous driving, and other scenarios continuously generating massive demand for computing power.

Against this backdrop, whether Cambricon can translate the capital market's lofty expectations into tangible revenue growth will be the key determinant of its long-term investment value. While keeping an eye on short-term stock performance, investors should also closely monitor the company's product deployment progress, customer expansion efforts, and marginal changes in its financial performance.