Chip Talk > The Rise of Cambricon: Semiconductor Innovation Dominates China's Market
Published August 25, 2025
In a striking turn of events, Cambricon Technologies has edged past Kweichow Moutai to become the costliest stock on China's equity market. This shift underlines the growing influence of semiconductor innovation and artificial intelligence (AI) in China's booming tech landscape.
Previously, Moutai, known for its iconic baijiu, was the darling of China's stock market. However, new dynamics are at play as technology stocks, particularly in the semiconductor sector, have captured investor attention. To understand the changing tides, South China Morning Post offers an in-depth look into Cambricon's unprecedented rise.
Cambricon's shares saw an impressive climb of 11.60% in a single day, reaching 1,384.93 yuan. Over the past year, the stock price has increased fivefold, catapulting the company's market value to a staggering 579.38 billion yuan (approximately $81 billion USD). It now sports an eye-popping price-to-earnings ratio, signaling heightened market expectations about its future potential.
What sets Cambricon apart is its pivotal role in China's AI development. As noted by Mo Wenyu from Cinda Securities, the company is key in the growing synergy between software and hardware—a core component of China's strategy to reduce dependency on foreign computing power.
Cambricon's success is a reflection of broader strategic shifts within China. With AI models like DeepSeek V3.1, the domestic AI chip industry sees vast opportunities. This trend is not only technological but part of a national policy emphasizing self-reliance. As such, companies like Cambricon, listed under the "Northbound Connect" scheme, are even accessible to international investors via the Hong Kong stock exchange.
Cambricon's ascent as China's most expensive stock underscores the critical role of semiconductors in the global economy. With its strategic focus on AI, China is pacing itself to become a leader in global tech—a fact not lost on international markets. The shifts observed at the China Computing Power Conference demonstrate China's commitment to expanding its national computing network.
By actively bridging regions, China is creating a unified data market. The strategic alignment across provinces, supported by over 100 service providers and 1,000 industry users, showcases an unparalleled capacity for growth.
As China's semiconductor industry continues to evolve, Cambricon's position raises significant questions about future trends. Will traditional sectors like liquor and agriculture concede more ground to tech? With ongoing investments in data centers and AI chips, Beijing's vision is clear: to harness AI as a cornerstone of economic growth.
By 2035, AI could contribute over 11 trillion yuan to China's GDP, signaling a remarkable transformation in how technology and economy are intertwined. For semiconductor professionals, staying informed about these developments is crucial to leveraging opportunities in a rapidly changing landscape.
For more details on Cambricon's financial trajectory and China's AI strategy, check out the detailed analysis in the South China Morning Post.
Join the world's most advanced semiconductor IP marketplace!
It's free, and you'll get all the tools you need to discover IP, meet vendors and manage your IP workflow!
No credit card or payment details required.
Join the world's most advanced AI-powered semiconductor IP marketplace!
It's free, and you'll get all the tools you need to advertise and discover semiconductor IP, keep up-to-date with the latest semiconductor news and more!
Plus we'll send you our free weekly report on the semiconductor industry and the latest IP launches!
