SHANGHAI – Chinese artificial intelligence (AI) chipmaker Cambricon Technologies issued a warning to investors about elevated trading risks after its shares more than doubled in one month.
Shares of Shanghai-listed Cambricon, the biggest publicly traded designer of chips that underpin AI development in China, have surged 134 per cent since July 28 – nearly 17 times the 7.9 per cent increase in the benchmark CSI 300 Index in the same period – as investors doubled down on innovative technology firms to keep driving a broader rally in the stock market.
The chipmaker closed up 16 per cent on July 28 at 1,587.91 yuan.
“The company’s stock price increase has exceeded that of most peers and is significantly higher than the performance of relevant indexes,” the company said in a filing to the Shanghai Stock Exchange.
“There is a risk that the stock price may have deviated from the company’s current fundamentals and investors participating in trading may face significant risks.”
Cambricon forecasts its 2025 revenue at between five billion yuan (S$897 million) and seven billion yuan, according to the filing. It reported revenue of 1.2 billion yuan in 2024.
The company also said it has no plans to release new products and called the information about new products circulated online recently “false”.
Cambricon’s warning came as Chinese stocks added more than US$1 trillion (S$1.28 trillion) to their market value in August, with the CSI 300 Index gaining more than 20 per cent from 2025’s low.
China’s stock market is heavily dominated by retail traders and the market rally has sparked concerns over growing risks to investors. This has prompted some brokerages and fund managers to cut back on financing and limit purchases, while the country’s commercial banks are tightening oversight of clients using credit cards to fund stock investments.
The ascent of Cambricon highlights an important shift in China’s stock market landscape as investors move away from consumer firms and bet on the tech sector to re-energise an economy mired in deflation and trade tensions.
Also fuelling demand for the stock was a recent move by Goldman Sachs Group to raise its price target by 50 per cent on a brighter profit outlook. BLOOMBERG