Cambricon, a leading Chinese chipmaker, reported a massive surge in revenue for the first half of the year, climbing over 4,000% to 2.88 billion yuan, or around $402.7 million.
The company also said its net profit hit a record, 1.04 billion yuan, as it positions itself as one of the top local suppliers for AI chips. These are the same kinds of chips used to train and run AI models, the kind Nvidia currently dominates globally.
The report came just hours before Nvidia is scheduled to announce its own earnings for the second fiscal quarter. Nvidia had posted $44 billion in revenue between February and April.
Cambricon’s results are nowhere close, but its surge points to rising demand for non-U.S. alternatives, especially after growing concerns that American tech might get cut off. Beijing wants self-sufficiency, and Cambricon is stepping into that space.
China restricts Nvidia chips and backs local makers like Cambricon
Earlier this year, the U.S. government blocked Nvidia from selling its low-performance H20 AI chips to China. That ban didn’t last. The Trump administration later allowed Nvidia to resume exports, but there’s a new rule: 15% of every dollar Nvidia earns from China has to be sent to the U.S. government. So the sale comes with a tax.
Still, China is not encouraging local buyers to pick up Nvidia’s H20 chip, even if it’s technically back on the market. Sources say officials have warned firms to avoid relying on U.S. parts when possible.
As a result, companies are combining whatever Nvidia stock they’ve hoarded with chips made at home. That’s where Cambricon and other Chinese names come in.
Cambricon said Wednesday it’s working on better software and developing next-gen hardware to handle the growing number of local AI workloads.
That’s important because Nvidia isn’t just ahead on chip specs. It also has a huge ecosystem of software that developers already use. Cambricon knows that. It’s trying to close the gap.
According to S&P Capital IQ, Cambricon’s market cap has jumped by over $40 billion this year, bringing its total valuation to about $80 billion. The stock has more than doubled in 2025 alone. A lot of that momentum is coming from local demand and state support.
But Cambricon, and all other Chinese chipmakers, still have a long road ahead. Despite the record profit, its technology is still far behind Nvidia’s.
And the export restrictions from the U.S. mean Chinese firms don’t have access to the tools and machines needed to make the most advanced chips. That makes it harder to catch up, no matter how much money they make.
If you're reading this, you’re already ahead. Stay there with our newsletter .
