Cambricon Soars on 4,000% Revenue Jump, Signals China's Push to Replace Nvidia

Cambricon surged to a record profit in the first half of 2025 as Chinese firms shift to domestic chipmakers amid growing restrictions on U.S. technology exports.

Cambricon's revenue climbed over 4,000% year over year to 2.88 billion Chinese yuan ($402.7 million) in the first half of 2025, with net profit reaching a record 1.04 billion yuan. The sharp rise reflects strong demand for domestic AI chips as Chinese companies seek to reduce reliance on Nvidia (NVDA, Financials).

The company's growth coincides with restrictions on Nvidia exports. Earlier this year, Nvidia was temporarily blocked from selling its H20 chip to China and now must share 15% of related revenues with the U.S. government. Beijing has reportedly advised Chinese firms to avoid buying the chip.

Cambricon's market capitalization has climbed more than $40 billion in 2025, with total valuation nearing $80 billion. While its revenue base remains much smaller than Nvidia's $44 billion for its most recent quarter, Cambricon said it is working on next-generation hardware and expanding its software ecosystemlong considered a key Nvidia advantage.

Still, challenges remain. Cambricon and its domestic peers lag behind Nvidia in chip design and manufacturing capabilities. Export controls continue to limit China's access to advanced semiconductor tools, which may constrain long-term innovation.