Tai Mei Ti A P P·2025-10-22 03:18Core Viewpoint - The ongoing geopolitical tensions are causing a significant market split in the AI computing sector between the US and China, leading to a complete exit of Nvidia from the Chinese market, which presents a substantial opportunity for local AI chip companies like Cambricon [1][10]. Group 1: Nvidia's Market Exit - Nvidia's CEO Jensen Huang stated that the company's market share in China has dropped from 95% to 0%, indicating a complete withdrawal from the Chinese market [1][10]. - The US government's export restrictions on high-performance computing chips have severely impacted Nvidia's ability to operate in China, leading to the introduction of less capable products like the H20 platform, which has also faced declining demand [9][10][18]. Group 2: Opportunities for Local Companies - Cambricon, a Chinese AI chip company, has seen a dramatic increase in revenue, achieving 1.727 billion yuan in Q3 2025, a year-on-year growth of 1332.52% [2][22]. - The absence of Nvidia has allowed Cambricon to become a major beneficiary in the Chinese AI computing market, positioning itself as a leading supplier [3][10]. Group 3: Historical Context and Growth - The timeline of AI computing development highlights a significant shift since 2016, when Nvidia began its deep engagement in the Chinese market, which has now reversed due to geopolitical factors [4][6][7]. - Cambricon's growth trajectory has been marked by significant funding rounds and partnerships, including its early collaboration with Huawei, which helped establish its reputation in the AI chip sector [11][12]. Group 4: Financial Performance and Market Position - Despite previous losses, Cambricon has turned profitable, reporting a net profit of 1.038 billion yuan in the first half of 2025, a significant turnaround from a net loss of 530 million yuan in the previous year [16][22]. - The company's stock has surged dramatically, reflecting market confidence in its future growth potential, with its share price reaching a historical high of 1595.88 yuan in August 2025 [16][18]. Group 5: Competitive Landscape - Huawei is emerging as a formidable competitor in the AI computing space, with plans to challenge Nvidia directly through its Ascend chip series and advanced computing clusters [20][21]. - The rapid technological advancements and market responsiveness of local companies like Cambricon are contributing to a robust domestic AI computing ecosystem, further diminishing Nvidia's prospects in China [19][22].