This chip stock is rising amid Nvidia China. The AI War turned.
Copyright © HT Digital Streams Limit all rights reserved. Adam Clark, Barrons 2 min Read 28 Aug 2025, 06:07 PM IST China wants to boost the domestic production of artificial intelligence chips. Summary Nvidia does not predict sales of its H20 chip for the Chinese market in the current term. This is good news for China’s hottest slide manufacturer. Nvidia will not be able to sell its chips in China in the foreseeable future. This is a good news for Cambricon Technologies, the Chinese chipmaker aimed at becoming the domestic alternative to artificial intelligence processors. Cambricon shares closed 16% higher in the Hanghai trading on Thursday, after Nvidia said it did not predict any sales of its H20 chip for the Chinese market in the current term. Cambricon is in the spotlight after reporting this week that its quarterly turnover has risen by about 4,000% amid an increasing demand for domestic AI chips. According to the Wall Street Journal, the Chinese government has discouraged the companies from buying Nvidia’s hardware. This has led to a boom in the shares of domestic Chinese companies. Cambricon shares are rising more than sixfold over the past year. How far the rally can go will probably depend on whether Nvidia Beijing and Washington can convince to allow AI chips to sell to Chinese customers. Nvidia CEO Jensen Huang noted that China is a $ 50 billion market for AI infrastructure, which is growing at 50% a year, and said there is a ‘real possibility’ that in the future he could sell its more advanced Blackwell discs there. According to the South China Morning Post, Cambricon’s chips will not be as good as nvidia’s, but it will improve. This will make it better than the H20, which deliberately have limited capabilities to meet the US export controls, although factors such as energy consumption and software compatibility can make head-to-head equations difficult. Cambricon did not respond to Barron’s request for comment. Another problem for Cambricon, apart from the performance, is whether it can produce slides on adequate scale. According to Goldman Sachs, the AI chips of the AI chips will come to about 143,000 units, while Nvidia sent about one million of its H20 chips for the Chinese market last year. The Chinese slid manufacturers as a whole aim to triple their production of AI chips in 2026, with three manufacturing plants being constructed in the country, according to the Financial Times, citing people with knowledge of the plans. While the new plants are designed to support the production of Huawei Technologies, the extensive capacity at Chip manufacturer semiconductor manufacturing international smaller designers such as Cambricon will increase their own production, the FT reports. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More topics #semiconductors Read the following story