China Cambricon chip leader sees a profit from Deepseek

Chinese artificial intelligence designer, who competes with Huawei Technologies Co. To provide accelerators to develop artificial intelligence models and hosting, a profit of 1.03 billion yuan (144 million dollars) for a loss of more than 533 million yuan. This is outside the increase of about 44 times the revenue to 2.9 billion yuan. Her shares rose more than 8 % in Shanghai.

Results emphasize how startups and large technology companies such as Alibaba Group Holding Ltd. An increasingly local alternatives to NVIDIA Corp. Chinese authorities have Urging Local agencies to use local chips, referring to security concerns as well as the constant uncertainty of the Trump administration export restrictions.

This is the feelings raised towards chip makers amid high geopolitical tensions and the disruption of the supply chain. CAMBRICON – one of the largest artificial intelligence foil designers – has doubled its market value to $ 80 billion this month alone. This is after it became the best performance in China stock From 2024, the investor’s enthusiasm on government support for local technology. On Tuesday, the State Council affirmed support for the adoption of artificial intelligence as well as the development of vehicles and smart robots – each of which requires artificial intelligence treatments.

“The restrictions imposed on the AI ​​sector in China are government support for local companies to advance growth and replace imported chips,” said Macheng, President of Chentchen Joz Investment Company.

Chips stocks have led gains in the last Chinese stock market leap As investors grow more optimistic about the country’s artificial horizons and the latest typical updates for Deepseek, which is what He said Designed to work with local artificial intelligence chips from the next generation.

Despite strong results, Cambricon admitted intensive competition in the artificial intelligence chips sector, while maintaining an absolute feature only in the market. This also allows the United States government NVIDIA and Advanced Micro Devices Inc. By resuming sales of some low chips to the country.

To support its base, Cambricon said it is extensive support for Deepseek, Alibaba’s QWEN and Tencent Holdings Ltd .. Declare Special mode of 4 billion yuan in July to finance the large model chips platform.