Core Viewpoint - The emergence of Cambricon (688256.SH) as a new "king of stocks" in the A-share market, surpassing Kweichow Moutai, is driven by its impressive financial performance and the growing demand for AI computing power [2][3]. Financial Performance - Cambricon reported a revenue of 28.81 billion yuan for the first half of the year, a staggering increase of 4347.82% year-on-year, with a net profit of 10.38 billion yuan, marking a turnaround from previous losses [2][4]. - In Q2, the company achieved a revenue of 17.69 billion yuan, up 4425.01% year-on-year, and a net profit of 6.83 billion yuan, compared to a loss of 3.03 billion yuan in the same period last year [2][4]. - The company has achieved profitability for three consecutive quarters, indicating a significant shift in its financial trajectory [2]. Market Dynamics - The Ministry of Industry and Information Technology emphasized the need to enhance the quality of computing power supply and accelerate breakthroughs in key technologies like GPU chips, positioning Cambricon as a key beneficiary of favorable policies [3]. - The recent launch of DeepSeek-V3.1, which supports UE8M0 FP8 parameters, is seen as a catalyst for Cambricon's stock price surge [3][6]. Product Development - Cambricon's new cloud high-performance computing chip, the Siyuan 590, is designed to be compatible with mainstream AI models and is considered to be at the forefront of domestic technology [4]. - The company’s cloud product line revenue surged to 11.66 billion yuan in 2024, a year-on-year increase of 1187.78%, and accounted for 99.30% of total revenue [5]. Industry Trends - The demand for AI computing power is expected to continue growing, with the accelerated server market in China projected to reach 22.1 billion USD in 2024, a 134% increase from 2023 [6]. - The trend towards low-precision quantization in AI models is gaining traction, with FP8 technology being highlighted for its efficiency in reducing computational resource needs while maintaining high accuracy [7][8]. Strategic Initiatives - Cambricon plans to raise up to 3.985 billion yuan through a specific issuance of A-shares, with significant investments earmarked for large model chip and software platforms to enhance its software ecosystem [9].