Nvidia(US:NVDA) 3 6 Ke·2025-08-25 12:41Core Viewpoint - Cambricon, often referred to as "China's Nvidia," has seen a significant surge in stock price, reaching a historical high of 1384.93 CNY per share, with a market capitalization of 579.4 billion CNY, making it the second stock in A-shares to exceed 1000 CNY after Kweichow Moutai [1][4][14]. Group 1: Stock Performance - On August 25, Cambricon's stock opened up 6.26% and closed with an increase of 11.4% [1]. - Compared to its low point of 46.59 CNY in April 2022, the stock has experienced a nearly 30-fold increase over three years [4]. - Goldman Sachs raised the target price for Cambricon by 50% to 1835 CNY, which could push its market value close to 770 billion CNY [4]. Group 2: Company Background - Founded in March 2016 by Dr. Chen Tianshi, Cambricon is a leading AI chip company in China, with products including cloud AI chips, accelerator cards, and edge products [5]. - The company aims to initiate a new era of intelligence with its name derived from the Cambrian period, symbolizing a burst of biological diversity [5]. Group 3: Market Context - The global AI chip market is expected to experience explosive growth, with Deloitte predicting it will exceed 150 billion USD by 2025 and reach 400 billion USD by 2027 [6]. - The release of the DeepSeek-V3.1 model has heightened interest in AI chips, with Cambricon's products being seen as key contenders for future AI computing orders [6][9]. Group 4: Competitive Landscape - Cambricon's Xuanyuan series chips are viewed as leading options for supporting the UE8M0 FP8 data compression algorithm, which is crucial for AI calculations [9]. - Nvidia has halted production of its H20 chip for the Chinese market, which may create further opportunities for domestic AI chip manufacturers like Cambricon [10][11]. Group 5: Financial Performance - In 2024, Cambricon reported a revenue of 1.174 billion CNY, a year-on-year increase of 65.56%, while its net loss narrowed by 47.76% to 443 million CNY [12]. - The company achieved a net profit of 355 million CNY in the first quarter of this year, marking its first profitable quarter since its IPO [12]. Group 6: Risks and Concerns - Cambricon's revenue concentration is high, with its top five customers accounting for 94.63% of its revenue, raising concerns about sustainability [18]. - The rapid increase in stock price may not be sustainable if future earnings do not keep pace with valuation increases, potentially leading to a market correction [20].