The report claims that next year’s AI chip production is planned to increase twofold. Cambricon surged at the close, releasing a late-night “solemn statement”: Untrue.

The report claims that next year’s AI chip production is planned to increase twofold. Cambricon surged at the close, releasing a late-night “solemn statement”: Untrue.

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On Thursday, December 4, AI chipmaker Cambricon’s stock price surged at the end of trading due to market rumors that it would significantly increase production capacity next year. Later that night, the company urgently issued a "solemn statement" refuting the rumors, stating that all company-related information circulated by media and online that day was false and reserving the right to pursue legal action.

Although Cambricon denied the rumors, domestic and foreign institutions remain highly optimistic about its future performance. International investment bank Bernstein’s Thursday target price suggests Cambricon’s stock still has 46% upside from the day's closing price. Several institutions believe that, with accelerated domestic substitution, Cambricon is likely to gain significant market share in the upcoming round of computing power investment.

Rumors Trigger Late Trading Volatility

On Thursday morning, Cambricon’s stock fell nearly 3% before rebounding. At midday, rumors spread that Cambricon would significantly increase production capacity next year, aiming to fill the gap left by Nvidia’s exit from the Chinese market. Following this news, Cambricon’s stock surged with heavy trading towards the close.

According to Securities Times, previous media reports claimed Cambricon planned to triple its production of AI chips by 2026 to seize more market share and fill the gap left by Nvidia’s departure. The reports also stated that Cambricon was preparing to deliver 500,000 AI accelerators in 2026, including up to 300,000 of its most advanced Siyuan 590 and 690 chips.

Ultimately, Cambricon closed up 2.75% at 1,369 yuan/share, with a total market cap of 577.3 billion yuan. As of Thursday’s close, Cambricon’s stock had risen 108% year-to-date.

Company Issues Urgent Late-Night Denial

Late at night on December 4, Cambricon’s official WeChat account published a "Solemn Statement." The statement said the company had noted that media and online sources had circulated misleading and false information regarding the company's products, customers, supply, and production forecasts.

The statement reminded investors that official disclosures are the standard for company-related matters, encouraging investors to verify information and not to disseminate or believe unverified or unclear sources. Furthermore, Cambricon reserved the right to pursue legal action against anyone fabricating or spreading false information.

Cambricon’s previously released third-quarter report shows that in the first three quarters of 2025, the company achieved revenue of 4.607 billion yuan, up 2,386.38% year-on-year; net profit attributable to shareholders was 1.605 billion yuan, up 321.49% year-on-year, with an overall gross margin of 55.29%. In the third quarter of 2025, the company achieved revenue of 1.727 billion yuan and net profit attributable to shareholders of 567 million yuan.

Institutions Favor Domestic Substitution Potential

Despite Cambricon’s stock price doubling this year, many institutions remain optimistic about continued growth.

On Thursday, International investment bank Bernstein upgraded Cambricon to “outperform,” with a target price of 2,000 yuan—46% higher than the closing price that day.

First Shanghai Securities stated that AI applications are accelerating, and major client demand outlook is positive. Cambricon’s products perform exceptionally well in typical AI scenarios on the client side, such as large model training and inference, intelligent vision, speech processing, and recommendation systems. Additionally, domestic computing power substitution is speeding up, and the supply-demand gap urgently needs to be filled. IDC predicts that by 2025, the Chinese intelligent computing market will reach $40 billion, and by 2029, it will exceed $140 billion. Facing a trillion-yuan market, the domestic supply chain has made significant progress, and domestic chips will continue to gain market share over the next few years. With its technical capabilities and first-mover advantage, Cambricon is expected to gain a significant share in the new wave of domestic computing power investment.

Donghai Securities previously pointed out that the company’s revenue and net profit attributable to shareholders saw substantial year-on-year growth in the first three quarters of 2025, mainly due to volume expansion of the cloud-side Siyuan 590 products; Siyuan 690 is also expected to benefit from increases in both volume and price. The firm indicated that, amid U.S.-China tech tensions, domestic AI chips are entering a period of accelerated substitution.

First Shanghai gives Cambricon a target price of 1,683 yuan, representing a 26% upside from the current price. Donghai Securities forecasts the company’s revenue for 2025, 2026, and 2027 to be 6.86 billion, 13.865 billion, and 22.655 billion yuan, respectively; net profit attributable to shareholders to be 2.336 billion, 4.839 billion, and 7.791 billion yuan, respectively, and rates the stock as "overweight."

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