Chinese Nvidia rival Cambricon posts over 4,000% surge in revenue

Chinese chipmaker Cambricon Technologies, which is seen as a potential domestic alternative to AI giant Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]), posted a more than 4,000% surge in revenue and swung to profit in the first half of the year.

The results reflect demand for domestic chips as Beijing encouraged the use of homegrown technology following the frenzy driven by DeepSeek’s breakthrough AI models.

Cambricon, which makes AI chips used in servers, data centers, and other applications, is among many companies that are looking to take on competition and become an alternative to Nvidia.

In the first half of the year, Cambricon recorded revenue of 2.88 billion Chinese yuan ($402.7 million). Meanwhile, net profit attributable to shareholders showed a strong turnaround and reached 1.04 billion yuan, compared with a loss of 533 million yuan a year earlier.

Even though the numbers are smaller compared to Nvidia’s $44.06 billion of revenue in its first quarter, Cambricon’s results highlight a gaining momentum in China's domestic AI chip industry amid U.S. restrictions on China’s AI sector.

According to a Financial Times report on Wednesday, China's chipmakers are seeking to triple the country's output of AI chips in 2026, in order to reduce dependence on Nvidia. The tech giant is set to report its fiscal second-quarter earnings [https://seekingalpha.com/news/4489528-heres-what-to-watch-as-nvidia-reports-earnings-today]later today.

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