The first quarterly profit of Cambricon marks a turning point in the technological competition between USA and China for AI chips. The Chinese company has indeed strengthened its position in the AI market, fueling the country’s ambitions for technological self-sufficiency.
Let’s see all the details in this article.
China accelerates towards technological autonomy in the AI chip sector against the USA
The competition between the United States and China for technological dominance is reaching new heights, especially in the sector of AI chips, one of the most strategic fields of global innovation.
In this context, the Chinese Cambricon Technologies has achieved a historic result: its first quarterly profit.
This milestone not only represents a step forward for the company, but also symbolizes China’s progress in pursuing technological autonomy in the face of restrictions imposed by the United States.
Founded in 2016, Cambricon Technologies quickly became one of the leading companies in the design of chips for intelligenza artificiale in China.
In the fourth quarter of 2024, the company recorded a net profit ranging between 240 million and 328 million yuan, after having incurred losses of 724 million yuan in the first nine months of the year.
This result is not only remarkable in financial terms, but also demonstrates Cambricon’s ability to adapt and thrive in a bull and bear environment.
The race for AI chips between the United States and China has been intensified by the technological export restrictions imposed by Washington.
Such measures aim to limit China’s access to advanced processors, like those produced by Nvidia, a global leader in the sector.
However, Cambricon has responded with its own innovations, including the Cambricon-1A processor, which has been successful in the domestic market, finding application in devices from companies like Huawei.
Exponential growth in the mercato
The success of Cambricon has not gone unnoticed by investors.
Its shares, listed on the Star Market of the Shanghai Stock Exchange, recorded an impressive increase of over 470% in 2024, rising from 120.80 yuan to 695.96 yuan.
This increase reflects the market’s confidence in the long-term potential of the company and in the broader semiconductor sector in China.
The Chinese AI chip market is expected to reach a value of 178 billion yuan by 2025, according to analyses by Changjiang Securities.
This growth is fueled by Beijing’s push towards technological self-sufficiency, a strategic priority for the government, and by significant investments from Chinese technology companies.
ByteDance, for example, has allocated 4.5 billion yuan to build a new computing center in the Shanxi province. This highlights the growing commitment of companies in expanding artificial intelligence infrastructure.
In any case, despite the progress, Cambricon still faces significant challenges. Its market valuation, currently at 41 billion dollars, is a fraction compared to the 3 trillion dollars of Nvidia.
Bridging the technological gap with international giants remains a priority objective, but it requires significant investments in research and development.
The competition is further complicated by the new US regulations, announced in January 2025, which further restrict China’s access to advanced technology.
These restrictions put pressure on Chinese companies, forcing them to find national solutions to address the growing demands of the market.
A promising future for the Chinese AI sector
Despite the difficulties, the future looks promising for Cambricon and for the AI semiconductor sector in China.
Favorable government policies, combined with rapidly growing domestic demand, offer a favorable environment for expansion.
The inclusion of Cambricon in the SSE 50 index of the Shanghai Stock Exchange, which gathers the most valuable companies in the Chinese market, highlights its strategic importance.
Furthermore, Cambricon’s growing specialization in 7-nanometer AI chips represents a competitive advantage, especially at a time when China is committed to developing advanced technological capabilities domestically.
Finally, the collaboration with technological giants like Huawei further strengthens the company’s position in the domestic market.
Source: https://en.cryptonomist.ch/2025/01/17/cambricon-and-the-new-era-of-ai-chips-challenge-between-usa-and-china/