Cambricon Technologies has captured the spotlight by overtaking Kweichow Moutai as China’s priciest stock—a development that highlights the rising influence of artificial intelligence. On Monday, the chipmaker’s shares leapt by 11.60%, reaching 1,384.93 yuan and pushing its market value to a striking 579.38 billion yuan (around US$81 billion). This remarkable performance, which has seen the stock more than double this year and increase fivefold over the past twelve months, speaks volumes about its growing market prominence.
Trading at an extraordinary 4,554 times its historical earnings, Cambricon now sets a new benchmark for valuation. Previously, investors looked to Kweichow Moutai, known for its popular baijiu, as the benchmark for premium stock pricing. Mo Wenyu from Cinda Securities points out that China’s shift toward an integrated AI approach—combining software with hardware—is set to lessen reliance on overseas computing systems. For anyone keeping an eye on market trends, Cambricon is definitely one to watch.
The rollout of DeepSeek’s AI model V3.1 further energises the domestic AI chip sector, signalling a potential acceleration in the move away from imported technologies. As Cambricon’s stature grows, international investors have new opportunities via the Northbound Connect programme through the Hong Kong stock exchange, offering a fresh gateway into a rapidly evolving industry.
