In a significant development within the artificial intelligence (AI) semiconductor industry, China’s Cambricon Technologies has announced its first-ever quarterly profit. This achievement underscores China’s rapid progress in AI chip development and intensifies the ongoing competition with the United States in this critical technological arena.
Financial Turnaround
Cambricon reported a net profit ranging between ¥240 million and ¥328 million (approximately $32.74 million to $44.74 million) for the fourth quarter of 2024. This positive outcome marks a notable turnaround for the company, which had incurred a loss of ¥724 million ($98.76 million) over the first three quarters of the year. The company’s annual revenue surged nearly 70% in 2024, reaching approximately ¥1.2 billion ($163.7 million). While this figure remains modest compared to industry giants like Nvidia, which reported global revenues of $90 billion, it signifies substantial growth for Cambricon.
Strategic Positioning and Market Impact
Founded in 2016, Cambricon has positioned itself as a key player in China’s pursuit of semiconductor self-sufficiency. The company’s recent profitability is seen as a significant milestone in this endeavor. Investor confidence has been bolstered, evidenced by a 470% surge in Cambricon’s stock, elevating its market capitalization to $41 billion.
Navigating US Export Controls
Cambricon’s success comes amid escalating U.S. export controls aimed at limiting China’s access to advanced semiconductor technologies, particularly sophisticated AI processors from companies like Nvidia. These restrictions have compelled Chinese firms to innovate and develop domestic alternatives. Cambricon’s achievement highlights the effectiveness of these efforts and signals a shift in the global AI chip landscape.
Broader Implications in the AI Chip Race
Cambricon’s profitability is part of a broader narrative of China’s advancements in AI technology. Companies like DeepSeek have also made headlines by developing competitive AI models cost-effectively, challenging the notion that leading AI development requires expensive, cutting-edge hardware. DeepSeek’s approach involved leveraging young talent and creative programming, resulting in powerful AI capabilities achieved with minimal data processing costs.
Future Outlook
As the competition between the U.S. and China in the AI chip sector intensifies, Cambricon’s recent success underscores China’s growing capabilities in this field. The company’s financial turnaround not only reflects its resilience but also highlights the broader momentum within China’s tech industry to achieve self-reliance in critical technologies. This development is likely to have significant implications for the global semiconductor market and the future dynamics of U.S.-China technological competition
References
- Tom’s Hardware. (2025). China’s Cambricon posts first profit as demand for this Nvidia rival’s AI processors explodes. Retrieved from https://www.tomshardware.com/tech-industry/artificial-intelligence/chinas-cambricon-posts-first-profit-as-demand-for-this-nvidia-rivals-ai-processors-explodes
- TechHQ. (2025). Chinese Cambricon’s first profit signals Beijing’s tech independence. Retrieved from https://techhq.com/2025/01/chinese-cambricons-first-profit-signals-beijings-tech-independence/
- AI News. (2025). US-China AI chip race: Cambricon’s first profit lands. Retrieved from https://www.artificialintelligence-news.com/news/us-china-ai-chip-race-cambricons-first-profit-lands/
- The Wall Street Journal. (2025). How China’s DeepSeek Outsmarted America. Retrieved from https://www.wsj.com/tech/ai/china-deepseek-ai-nvidia-openai-02bdbbce