Chinese artificial-intelligence chip company Cambricon Technologies became the first stock on a Nasdaq-like local venue to join the trillion-yuan club, only to lose the status on the following day amid heightened volatility.
Cambricon's market capitalization surpassed 1 trillion yuan, equivalent to $147.20 billion, by the market close on Tuesday in Shanghai, but it fell below the threshold early Wednesday following the company's comments on increasing competition and higher costs of raw materials.
The chip designer's shares were 4.5% lower at midday. Still, the stock has risen nearly 70% so far this year after more than doubling in 2025.
U.S. chip export restrictions and China's drive for tech self-sufficiency have driven a flux of capital into domestic AI chip makers, including Cambricon, which is seen as China's challenger to Nvidia.
Cambricon's first-quarter revenue and net profit more than doubled amid soaring domestic demand for AI hardware.
AI infrastructure stocks have captured the top 10 spots by market cap on the technology-focused Science and Technology Innovation Board amid the policy push. Semiconductor Manufacturing International Corp., China's largest contract chip manufacturer, has risen 30% in Shanghai and was the second most valuable company while another chip designer Hygon Information held the third spot.
Cambricon said in an exchange filing late Tuesday that its share-price gains have exceeded those of major indexes. That warning may have cooled investor enthusiasm for its stock.
The Beijing-based company said competition is increasing in the AI chip field, potentially leading to fluctuations of its margins, as more players roll out different products.
Cambricon has been listed on a U.S. entity list since 2022, which restricts it from accessing critical foreign-produced technologies and manufacturing services.
The company also warned that material costs have risen due to strong demand. "Should the prices of upstream raw materials continue to rise, the company's operating results could be adversely affected," it said.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
July 01, 2026 00:36 ET (04:36 GMT)
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