Cambricon(SH:688256) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-17 15:12Core Viewpoint - The demand for AI computing power remains strong, with Cambricon's revenue in the first three quarters of this year increasing by over 23 times year-on-year, although there are signs of a slowdown in quarterly growth rates [1][4]. Financial Performance - In Q3 2025, Cambricon reported revenue of 1.727 billion yuan, a year-on-year increase of 1332.52%, and a net profit of 566 million yuan, up 390.23% [1]. - For the first three quarters, the company achieved revenue of 4.607 billion yuan, a year-on-year increase of 2386.38%, and a net profit of 1.604 billion yuan, up 320.19% [1]. - However, Q3 revenue decreased by 2.4% quarter-on-quarter, net profit fell by 17%, and the net profit after deducting non-recurring items dropped by 20.47% [1][8]. Market Dynamics - The growth in Cambricon's performance is attributed to the continuous expansion of the market and the increasing demand for AI applications [4]. - The company has benefited from the rising demand for AI computing power globally, establishing partnerships with leading companies in various sectors [4][10]. - The domestic AI server market is expected to see local chip suppliers' market share rise to 40% by 2025, indicating a favorable environment for Cambricon [11]. Product Development - Cambricon's cloud product line generated 2.87 billion yuan in revenue, becoming the main revenue driver in the first half of the year [4]. - The company is continuously optimizing its software platforms to support various AI models, enhancing its competitive edge in the market [6]. Cash Flow and Investment - The operating cash flow improved significantly, with a net cash flow of -29 million yuan for the first three quarters, a year-on-year increase of 98.38% [7]. - Cambricon recently raised 3.985 billion yuan to invest in projects related to AI models and to supplement working capital, indicating a strategic focus on enhancing its capabilities in the AI chip sector [12][13].