Cambricon Technologies Corp. has reported record profits for the first half of the year, driven by increased demand for domestically produced AI chips. This surge follows government initiatives promoting the use of local technology and DeepSeek's AI advancements. DeepSeek, a Chinese AI startup, has hinted at altering its data format to support domestic AI chips, further stimulating investor interest and confidence in local hardware suppliers.
China aims to increase its AI computing capacity by 40% this year, benefiting local hardware manufacturers like Cambricon. Cambricon's share price has seen a significant rise, reflecting expectations that it could become an alternative to US AI chipmaker Nvidia. DeepSeek's latest AI model is specifically designed to run on Chinese semiconductors, encouraging other tech giants to choose homegrown options.
This shift signifies a growing trend towards self-sufficiency in China's AI sector, with increased coordination between local model developers and hardware makers. Companies that have passed DeepSeek compatibility tests, including Cambricon, have seen their valuations soar. The AI Computing Power Concept Index, tracking related stocks, has reached record highs, indicating strong investor confidence in the sector.
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