Reports indicate that the production of AI chips is expected to double next year, with Cambricon surging in the late trading session, and a late-night "serious statement": untrue

On December 4th, Thursday, the stock price of AI chip manufacturer Cambricon surged sharply in the late trading session due to market rumors that it would significantly increase production capacity next year. Later that night, the company urgently issued a "serious statement" to refute the rumors, stating that the information related to the company disseminated by media and online that day was false, and it reserved the right to pursue legal responsibility.

Despite Cambricon's denial of the rumors, domestic and foreign institutions remain very optimistic about the company's future performance. International investment bank Bernstein provided a target price on Thursday that suggests a 46% upside potential for Cambricon's stock price compared to its closing price that day. Many institutions believe that against the backdrop of accelerated domestic substitution, Cambricon is expected to gain significant market share in the new round of computing power investment cycle.

Rumors Trigger Late Trading Volatility

In the morning session on Thursday, Cambricon's stock fell nearly 3% at one point, then fluctuated and rose. During the lunch break, rumors surfaced that Cambricon would significantly increase production capacity next year, aiming to fill the market gap left by NVIDIA's exit from the Chinese market. Following the news, Cambricon's stock surged in the late trading session.

According to Securities Times, earlier reports indicated that Cambricon plans to triple its artificial intelligence (AI) chip production by 2026 to capture more market share and fill the market void left by NVIDIA's exit. The report also stated that Cambricon is preparing to deliver 500,000 AI accelerators by 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 per share, with a total market capitalization of 577.3 billion yuan. As of Thursday's close, Cambricon's stock price has risen 108% year-to-date.

Company Issues Urgent Refutation Late at Night

Late on December 4th, the "Cambricon Technology" public account issued a "serious statement." The statement noted that the company was aware of the misleading and false information regarding the company's products, customers, supply, and production capacity forecasts disseminated by media and online today.

The statement reminded investors that all matters related to the company should be based on publicly disclosed information, urging investors to enhance their ability to discern information and not to spread or trust unverified or false information from unknown sources. Furthermore, the company reserves the right to pursue legal responsibility against anyone who fabricates or spreads false information.

Cambricon's previously released third-quarter report showed that in the first three quarters of 2025, the company achieved operating revenue of 4.607 billion yuan, a year-on-year increase of 2386.38%; it achieved a net profit attributable to shareholders of 1.605 billion yuan, a year-on-year increase of 321.49%, with a comprehensive gross profit margin of 55.29%. In the third quarter of 2025, the company achieved operating revenue of 1.727 billion yuan and a net profit attributable to shareholders of 567 million yuan.

Institutions Optimistic About Domestic Substitution Space

Despite Cambricon's stock price doubling this year, many institutions remain optimistic about its upward prospects.

On Thursday, international investment bank Bernstein upgraded Cambricon's rating to outperform the market, with a target price of 2,000 yuan, indicating a 46% upside from the closing price on that day.

First Shanghai Securities stated that the acceleration of AI applications and positive outlook for demand from major clients are encouraging. Cambricon's products perform excellently in typical AI scenarios such as large model training and inference in specific customer-side applications, intelligent vision, voice processing, and recommendation systems. Additionally, the acceleration of domestic computing power substitution has created an urgent need to fill the supply-demand gap. IDC predicts that the scale of China's intelligent computing market will reach $40 billion by 2025 and is expected to exceed $140 billion by 2029. In the face of a trillion-yuan market, the domestic supply chain has made positive progress, and domestic chips are expected to continue capturing market share in the coming years. With its technological capabilities and first-mover advantage, Cambricon is likely to gain significant market share in the new round of domestic computing power investment cycle.

Donghai Securities previously pointed out that the company's revenue and net profit attributable to the parent company are expected to grow significantly year-on-year in the first three quarters of 2025, mainly due to the substantial increase in cloud products represented by the Siyuan 590, with the Siyuan 690 also expected to benefit from the logic of rising volume and price. The institution noted that, against the backdrop of Sino-U.S. technology friction, domestic AI chips are entering a period of accelerated substitution.

First Shanghai set a target price of 1,683 yuan for Cambricon, indicating a 26% upside from the current price. Donghai Securities expects the company's operating revenue for 2025, 2026, and 2027 to be 6.86 billion yuan, 13.87 billion yuan, and 22.66 billion yuan, respectively; net profit attributable to the parent company is expected to be 2.34 billion yuan, 4.84 billion yuan, and 7.79 billion yuan, respectively, giving it an "overweight" rating