Investment Rating - The report maintains a "Buy" rating for Cambricon with a 12-month target price of Rmb1,223, implying an upside of 73.8% from the current price of Rmb703.60 [9][11]. Core Insights - Cambricon announced a private placement aiming to raise no more than Rmb4,980 million (US$685 million) to develop AI chips and software for generative AI, with 58% of the funding allocated to AI chips, 32% to software, and 10% for working capital [1]. - The company's R&D spending is projected to increase significantly, with a 52% CAGR expected from 2025 to 2030, reaching Rmb17 billion (US$2.4 billion) by 2030 [1]. - Cambricon's AI chips are designed for various applications, including training foundation models and supporting multimodal AI tasks across multiple industries such as internet, cloud computing, and healthcare [2]. Summary by Sections AI Chips Development - The company plans to develop multiple types of AI chips, including those for training foundation models and large language model inferencing, highlighting its experience in commercializing AI chips [2]. - Current AI chips support mainstream open-source AI models, enabling tasks in vision, audio, and natural language processing [2]. Software Platform for Generative AI - Cambricon aims to create a software platform that enhances the adaptability and user experience of its AI chips, focusing on software-hardware co-optimization [3][7]. - The platform will include a flexible coding system, training, and inferencing capabilities, and will be compatible with major AI programming frameworks like TensorFlow and PyTorch [3][7]. Financial Projections and Dividends - The private placement is expected to result in no more than a 5% increase in shares, while net income is projected to grow at a 77% CAGR from 2025 to 2030 [8]. - Cambricon has outlined a cash dividend plan for 2025-2027, with payout ratios increasing from 20% to 80% as the company matures and capital expenditures change [8].