Prime Highlights
- Cambricon’s revenue jumped over 4,000% in the first half of 2025, with profits reaching a record 1.04 billion yuan.
- The company’s market value climbed above $80 billion after adding more than $40 billion this year.
Key Facts
- From January to June, Cambricon reported revenue of 2.88 billion yuan ($402.7 million).
- Nvidia was briefly blocked from selling its H20 chip in China and now must share 15% of its China revenue with the U.S. government.
Key Background
Chinese semiconductor firm Cambricon Technologies has quickly risen as one of Nvidia’s fastest-growing rivals. In the first half of this year, the company reported a revenue jump of more than 4,000% and moved into profit, showing the impact of Beijing’s push to boost its domestic chip industry.
Between January and June, Cambricon generated 2.88 billion yuan ($402.7 million) in revenue and achieved a net profit of 1.04 billion yuan. While this is far smaller than Nvidia’s $44 billion revenue in its February–April quarter, investors responded strongly.
By 2025, the market value of the firm, Cambricon, increased by more than 40 billion dollars due to an increase of more than two times its share value. S&P Capital IQ holds the company to be worth approximately 80 billion dollars. Chinese tech giants are turning to local chipmakers as concerns grow over restrictions on U.S. technology.
Even with strong growth, Cambricon still faces hurdles. Nvidia holds an advantage in both advanced hardware and software, which developers worldwide depend on. In response, Cambricon said it is strengthening its software and developing new-generation hardware to close the gap.
Export controls remain another challenge. These rules limit China’s access to the latest chipmaking technology, slowing progress for homegrown firms. Nevertheless, the performance of Cambricon demonstrates how the AI chip industry in China is changing, with local firms on the verge of victory in cases when there is a lack of control over entry to U.S. technology.
As the company was supported by strong investors and increased chip demand, Cambricon has solidified its footprint in the chip industry in China and is set to play a bigger role in the country’s tech future.