Cambricon(SH:688256) Guo Ji Jin Rong Bao·2025-06-06 12:43Core Viewpoint - The recent announcement by Cambricon (688256.SH) regarding its fundraising project indicates a significant step towards enhancing its capabilities in AI chip technology and software platforms, amidst a growing demand for AI solutions and a favorable market environment for integrated circuits [1][2][4]. Fundraising Details - Cambricon has received approval from the Shanghai Stock Exchange for its securities issuance application, aiming to raise up to 4.98 billion yuan through a private placement of A-shares, which will not exceed 5% of the company's total share capital [1][2]. - The funds will be allocated to three main projects: 2.9 billion yuan for AI chip platform development, 1.6 billion yuan for software platform development, and 480 million yuan for working capital [2]. Market Context - The global integrated circuit market is projected to grow to 600.1 billion USD by 2025, reflecting a year-on-year increase of 12.27%, with China's market also expanding significantly [2]. - The shift towards AI and the increasing importance of intelligent computing hardware are driving growth in the semiconductor sector, positioning Cambricon favorably as a key player in this transition [2][4]. Company Background - Cambricon, founded in 2016, has undergone significant transformations, moving from an IP licensing model to focusing on intelligent computing systems and cloud chip products [3]. - The company has experienced substantial funding rounds prior to its IPO in July 2020, raising over 4.5 billion yuan from various investors, including major tech firms [3]. Financial Performance - Despite historical losses exceeding 5 billion yuan from 2018 to 2024, Cambricon has recently reported its first consecutive profitable quarters since its listing, with net profits of 282 million yuan and 355 million yuan in Q4 2024 and Q1 2025, respectively [4]. - The company's revenue for Q1 2025 surged by 4230.22% year-on-year, nearing the total revenue for the entire year of 2024, attributed to market expansion and AI application support [4]. Stock Performance - As of June 6, Cambricon's stock closed at 610 yuan per share, with a market capitalization of 254.6 billion yuan [5].