Chinese artificial intelligence (AI) chip powerhouse, Cambricon Technologies, is rapidly emerging as a formidable challenger to industry titan Nvidia. The company’s performance has reportedly surged dramatically following US sanctions that curtailed semiconductor exports to China, inadvertently fueling domestic demand.
As major Chinese AI development firms, including Alibaba, DeepSeek, and Tencent, sought reliable local chip alternatives, Cambricon, a prominent player in China’s AI chip landscape, experienced an unprecedented spike in demand for its advanced solutions.
According to Tech Wire Asia, Cambricon posted a substantial profit of 1.03 billion yuan, equivalent to approximately IDR 2.4 trillion (assuming an exchange rate of IDR 2,350 per yuan), in the first half of 2025. This remarkable turnaround stands in stark contrast to the previous year’s performance during the same period, when the company recorded a significant loss of 533 million yuan.
Reflecting this robust growth, Cambricon’s stock price soared to 1,249 yuan as of Friday, November 21st, marking a year-to-date increase of over 93%. This impressive surge has positioned Cambricon as one of the top-performing Chinese companies on the Shanghai Stock Exchange.
Global financial institution Goldman Sachs, as cited by Caixin Global, projects that Cambricon’s AI chip sales will reach one million units by 2028, capturing 11% of the burgeoning Chinese market. This figure is even predicted to double by 2030, underscoring the company’s significant growth trajectory.
Indeed, Cambricon’s ascent is widely heralded as a compelling ‘success’ story born from the very US sanctions imposed on China. Currently, the company is intensely focused on developing its new Siyuan 690 chip, which is already being touted as a direct rival to Nvidia’s high-performance H100.
Profile of Cambricon: Nvidia’s Emerging Rival
Cambricon Technologies was co-founded in 2016 by brothers Chen Yunji and Chen Tianshi, hailing from Nanchang, Jiangxi Province. Both Chens were recognized as child prodigies, enrolling in the prestigious ‘Special Class for the Gifted Young’ program at the University of Science and Technology of China from an early age. Their illustrious careers continued at the Chinese Academy of Sciences (CAS), a leading scientific and technological research institution in China.
Initially, they formed a small team dedicated to developing a prototype chip capable of deep-learning processes. This pioneering work eventually led to the formal establishment of Cambricon Technologies in 2016, with Chen Tianshi assuming the role of CEO.
A significant milestone was achieved in 2017 when Cambricon’s chips were, for the first time, entrusted to power devices for the tech giant Huawei Technologies. Their innovative chips significantly enhanced the photography and gaming capabilities of Huawei’s Mate 10 series smartphones, making Huawei’s demand the primary revenue stream for Cambricon.
However, the pivotal partnership between Cambricon and Huawei concluded in 2019. According to The Business Times, Huawei made a strategic shift to develop its own proprietary AI chip technology through its subsidiary, HiSilicon. Following this pivot, Cambricon redirected its focus towards designing and selling AI chips specifically for cloud servers and cutting-edge edge devices.
In 2020, Cambricon successfully listed on the Shanghai Stock Exchange STAR Market. Despite this initial public offering, the company continued to report consistent losses in the subsequent period.
The South China Morning Post further revealed that in 2023, Cambricon undertook significant workforce reductions, laying off nearly half of its employees. A key contributing factor to this downturn was the US decision to place Cambricon on an entity list, restricting the sale of its products to the United States.
The tide finally turned in the last quarter of 2024 when Cambricon reported its first profit since its IPO. This momentous achievement coincided with the tightening of US chip export controls to China, which effectively halted Nvidia’s previously dominant market penetration in the region. Bloomberg subsequently reported that Cambricon continued to achieve quarterly profits through to the third quarter of 2025.
Forbes reports that Chen Tianshi’s net worth, as CEO of Cambricon, has reached an astonishing US$21 billion, tripling his wealth within the current year. On Forbes’ 2025 list of China’s 100 Richest, Chen Tianshi secured the 15th position, solidifying his status as one of China’s wealthiest individuals.
Summary
Cambricon Technologies, a Chinese AI chip powerhouse, is rapidly emerging as a challenger to Nvidia, experiencing a dramatic surge in performance following US sanctions that fueled domestic demand. The company reported a substantial profit of 1.03 billion yuan in the first half of 2025, a significant turnaround from previous losses, with its stock price soaring over 93% year-to-date. Goldman Sachs projects Cambricon’s AI chip sales will reach one million units by 2028, capturing 11% of the Chinese market, as it develops its new Siyuan 690 chip to rival Nvidia’s H100.
Co-founded in 2016, Cambricon faced initial challenges including the end of its partnership with Huawei and consistent losses post-IPO in 2020, further impacted by US entity listing. The tide turned in the last quarter of 2024, when the company reported its first profit since its IPO, coinciding with tighter US chip export controls to China. This turnaround has seen CEO Chen Tianshi’s net worth reach US$21 billion, tripling within the current year.
