[News] AI Chip Firm Cambricon Poised as China’s Top Stock of 2024 with Nearly 400% Surge, Surpassing NVIDIA

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As 2024 draws to a close, it may be surprising to learn one of the stocks that has been surging the most throughout the year. According to Bloomberg, shares of China’s domestic AI chip company, Cambricon Technologies, have soared by 383% in 2024, outperforming U.S. AI accelerator giant NVIDIA and Taiwan-based foundry leader TSMC.

The Bloomberg report on December 30^th notes that the Shanghai-listed stock has reached a market value of USD 37 billion, with its performance surpassing the CSI 300 Index as well as the aforementioned tech behemoths.

Interesting enough, known as China’s first AI chip stock, Cambricon has faced setbacks since being blacklisted by the U.S. in late 2022, with reports of large-scale layoffs in 2023, a previous CNBC report indicated.

The company’s share rise in 2024, as per Bloomberg, is regarded to be fueled mainly by investor optimism surrounding China’s increased support for its tech sector amidst US trade restrictions.

A couple of months ago, rumors have been circulating that NVIDIA has stopped taking orders for its H20 chips customized for China since August. Shortly after, a previous report by Bloomberg revealed that regulators in China have been advising companies against buying H20, with Huawei and Cambricon Technologies, leading AI processor makers in China, turning out to be the major beneficiaries.

Citing projections from an analysist report, Bloomberg notes that Graphics processing unit (GPU) localization could experience substantial growth by 2025, with NVIDIA’s market share potentially dropping to 50%-60% by then. Huawei is expected to benefit the most from this shift, followed by Cambricon, as noted by the report.

According to TrendForce, NVIDIA continues to remain the dominant supplier in the global AI server market in 2024. Specifically, in the GPU AI server market, NVIDIA commands an overwhelming lead with a nearly 90% market share, while AMD follows at a distant 8%.

Notably, Cambricon has seen a sharp increase in demand lately. Bloomberg notes that the company’s sales surged by over 280% year-over-year in the third quarter of 2024.

However, founded in 2016, Cambricon has reportedly experienced consistent losses over the past seven years, with cumulative losses nearing 5 billion yuan, according to FUTUBULL.

Read more

• [News] China Reportedly Advises Local Companies to Avoid NVIDIA’s H20, Benefiting Huawei and Cambricon
• [New] Seven Chinese Chip Design Companies You Need to Know—All Aiming to Replace Nvidia

(Photo credit: Cambricon)