After 6 Years of Losses Totaling 3.8 Billion, Cambricon’s Market Cap Breaks the Trillion Mark; the STAR Market’s First Trillion-Yuan Stock Is Born

During early trading on June 30, Cambricon (688256.SH), the leading A-share company in computing power chips, surged by more than 8%, with its share price breaking through the 1,600 yuan mark in one fell swoop and reaching an intraday high of 1,620 yuan per share. TotalMarket CapitalizationOfficial Breakthrough‌10000亿元‌, become‌The first stock in the history of the STAR Market to surpass 1 trillion in market capitalization‌, propelling it to 9th place in terms of total market capitalization on the A-share market.

As of the midday market close, Cambricon was trading at 1,613 yuan per share, up 8.84%, with a total market capitalization of 1.01 trillion yuan.‌The stock price has risen by more than 77% so far this year.‌, while the Shanghai Composite Index rose by only 3.16% during the same period—this was no ordinary rally; it was the capital’s endorsement of a computing power revolution.

And standing behind this trillion-yuan milestone is a person‌Founder Born in the 1980s—Chen Tianshi‌. He holds a total of 29.34% shares in the company, both directly and indirectly, with a market value of nearly‌300 billion yuan‌. In just the past six months, his personal net worth has skyrocketed by more than‌120 billion yuan‌. From an obscure chip entrepreneur to the head of a computing power empire worth nearly 300 billion, Chen Tianshi has written one of the most astonishing wealth stories in China’s hard tech sector in less than six years.

Stunning Performance: A Dramatic Turnaround from ”Loss King” to ”Money-Making Machine”

If market capitalization is the market’s vote, then performance is the strongest foundation.

‌The Q1 2026 earnings report figures were nothing short of explosive‌:

norm	Value	Year-over-year growth rate
Revenue	2.885 billion yuan	‌+159.56%‌
Net Income Attributable to Parent Company Shareholders	1.013 billion yuan	‌+185.04%‌
Net Profit Excluding Non-recurring Items	934 million yuan	‌+238.56%‌
Net Cash Flow from Operating Activities	834 million yuan	‌First Time in the Black Since Going Public‌

Revenue for a single quarter has already reached nearly half of the company’s total revenue for 2025! It’s worth noting that when it went public in 2020, Cambricon’s annual revenue was only 459 million yuan, with a net loss attributable to parent company shareholders of 435 million yuan. Over the following four years, revenue hovered around 700 million yuan, while losses widened year by year, peaking at 1.257 billion yuan in 2022.‌Cumulative losses exceeding 3.8 billion yuan in the five years since its IPO‌, skepticism in the market has never ceased.

The turning point came in 2025. That year, Cambricon achieved operating revenue of 6.497 billion yuan, a year-over-year surge of 453.21%; net profit attributable to shareholders reached 2.059 billion yuan, marking a turnaround from a loss to a profit and a year-over-year increase of 555.24%. The company also launched, since its IPO‌First Dividend Proposal‌—A cash dividend of 15 yuan per 10 shares and a stock split of 4.9 shares per 10 shares, for a total cash payout of 632 million yuan.

As we entered 2026, growth not only failed to slow down but actually accelerated further. This isn’t just empty promises—it’s tangible results.

Products Are King: The Siyuan 690 Enters Mass Production, Taking on NVIDIA Head-on

Behind this surge in performance lies the solid foundation of product strength.

In early 2026, Cambricon’s next-generation flagship cloud AI chip‌Siyuan 690 Officially Enters Mass Production‌. This chip features a dual-die packaging design, with FP16 computing power exceeding‌700 TFLOPS‌, equipped with 196GB of HBM3 high-bandwidth memory, with a measured interconnect bandwidth exceeding 890 Gbps—compared to the previous-generation SiYuan 590’s computational performance of approximately 345 TFLOPS, performance has achieved‌A Leap Forward That Doubles the Results‌.

Even more critical is ecosystem compatibility. The Cambricon product portfolio has already achieved support for‌DeepSeek V4‌Instant adaptation of large models with trillions of parameters and millions of tokens of context. Major Chinese internet companies such as ByteDance, Alibaba, Tencent, and Baidu are all stepping up their procurement of domestically produced AI chips and deploying them in large quantities for core business scenarios such as large-model training and AIGC.

In 2025, Cambricon’s production of intelligent chips and boards reached 127,700 units, with sales reaching 117,400 units, representing year-over-year increases of 409.84% and 201.57%, respectively.‌A product isn’t just a research paper sitting on a lab shelf—it’s a computing engine actually running in a data center.‌

Of course, the challenges are equally daunting. Cambricon’s consolidated gross profit margin stood at 54.33%, which, although down slightly by 1.66 percentage points from the same period last year, still lags behind NVIDIA’s gross profit margin of over 75%. However, the company’s cost control during this period was impressive—the R&D expense ratio fell from 24.53% to 11.23%, indicating that economies of scale are beginning to take effect. Since its IPO (from 2020 through the first quarter of 2026), Cambricon has cumulatively invested in R&D‌7.436 billion yuan‌, which is almost equal to the total amount raised.

Undercurrents: Three Hidden Concerns Behind the Glory

However, despite the prestige of its trillion-yuan market capitalization, Cambricon is not out of the woods yet. On June 30, the company issued a risk warning announcement, candidly stating:

‌First, the stock price has risen too much in the short term.‌ Cambrian has explicitly stated that, as the company’s stock has recently outperformed relevant indices such as the STAR Market Composite Index and the Shanghai Composite Index, there may be a risk of a decline following a rapid short-term rise.

‌Second, the shadow of the ”Entity List.”‌ The company and some of its subsidiaries have been added to the U.S. ”Entity List,” which continues to put pressure on the stability of its supply chain. Cambricon operates under a fabless model, with suppliers including IP licensors, wafer foundries, and packaging and testing facilities; a disruption at any point in the supply chain could prove fatal.

‌Third, rising raw material prices.‌ In recent years, domestic semiconductor upstream supply has been tight, and procurement prices have generally been on the rise. Cambricon recently announced its intention to apply to banks for‌A comprehensive credit line of no more than 12 billion yuan‌, which is widely interpreted by the market as the company building up cash reserves to expand its procurement of key raw materials such as wafers and HBM. If prices for upstream raw materials continue to rise, this will have an adverse impact on operating performance.

In addition, risks such as high customer concentration and large amounts of inventory and prepayments should not be overlooked. As the company has stated, this is a ”sweet burden.”

The Battle for Market Share: A Head-to-Head Showdown with Huawei’s Ascend

In the race to develop domestic AI chips, Cambricon is not alone.‌Huawei Ascend 910B‌Built on a 7nm process and featuring a proprietary architecture that delivers exceptional computing density, the company has simultaneously developed a fully in-house, end-to-end system comprising CANN and MindSpore. By 2025, Ascend chips had achieved a significant market share in China’s AI chip market.

Cambrian and Huawei are currently the two domestic AI chip manufacturers with the largest shipment volumes to data centers; the two companies have been collaborating on‌Product Performance, Production Capacity, and Ecosystem Development‌Compete comprehensively across three dimensions.

From a global perspective, as the United States continues to tighten export controls on high-end AI chips to China, supply chain self-reliance has shifted from being a ”cost-saving option” to‌“Essential for Survival”‌. IDC forecasts that global enterprise spending on AI will reach‌ in 2026$940 billion‌, growing to $2.1 trillion by 2029. The market share of domestically produced AI chips is rapidly increasing.

Wall Street's Bet: Target Price Set at 2,400 Yuan

International investment banks are almost unanimously bullish on Cambrian:

• ‌Goldman Sachs‌: We have raised our net profit forecasts for 2026 through 2030 by 68%, 30%, 42%, 45%, and 43%, respectively, and raised the target price from 2,104 yuan to‌2,406 yuan‌, corresponding to an expected price-to-earnings ratio of 102 times for 2027. Goldman Sachs noted that this valuation is broadly in line with Cambricon’s average price-to-earnings ratio of 109 times since July 2024.

• ‌First Shanghai Securities‌: Revenue is projected to be 18.05 billion yuan, 28.98 billion yuan, and 39.29 billion yuan in 2026, 2027, and 2028, respectively, with net income attributable to parent company shareholders of 6.80 billion yuan, 11.47 billion yuan, and 15.81 billion yuan, respectively. Target price‌1,903 yuan‌, corresponding to a 70x P/E ratio for 2027.

Conclusion: A trillion is not the end, but the beginning.

From a loss of 3.8 billion to a quarterly profit of 1 billion, and from being completely overlooked to a market capitalization of one trillion, Cambricon pulled off a breathtaking turnaround in just six years.

But as Cambrian itself has warned—‌The stock price has risen too sharply in the short term, and there may be a risk of a decline.‌ On the STAR Market—where daily price swings can reach as much as 20%—a market capitalization of one trillion is both a crown of glory and a Sword of Damocles hanging over investors’ heads.

For the average investor, one lot of Cambricon costs about 160,000 yuan. Combined with the 500,000-yuan account opening threshold for the STAR Market, the cost of jumping in right away is quite high. However, instrument-based products such as the STAR Market Information ETF offer a lower-threshold way to participate—with a minimum investment of 1 yuan, they provide diversified exposure to 50 leading “hard tech” companies, with Cambrian’s weighting at only about 13%.

‌This is an era of computing power, and Cambricon is at the forefront of this era.‌

(Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Investors who act on this information do so at their own risk.)