By South China Morning Post | Created at 2025-01-15 10:32:16 | Updated at 2025-01-15 13:33:10
3 hours ago
China’s most valuable artificial intelligence (AI) company, whose stock surged more than 470 per cent in the past 12 months, predicted its first-ever quarterly profit, adding fuel to hopes among some investors that the firm could replace US chip designer Nvidia in the local market amid Beijing’s self-sufficiency drive.
Cambricon Technologies, which has a market capitalisation of about 300 billion yuan (US$41 billion), said in a stock filing on Tuesday that its full-year loss in 2024 was expected to narrow to between 396 million yuan and 484 million yuan.
That means in the last quarter, the company made net profits that ranged from 240 million yuan to 328 million yuan, after posting a loss of 724 million yuan in the first nine months of the year. That marked the first quarter that Cambricon had become profitable.
The Beijing-based company also said its revenues last year were forecast to increase nearly 70 per cent to 1.2 billion yuan.
Its Shanghai-listed shares closed at 695.96 yuan on Wednesday, a hefty rise from 120.80 yuan a year ago.
Founded in 2016 and listed on Shanghai Stock Exchange’s Nasdaq-style Star Market since July 2020, Cambricon is one of China’s best hopes in developing home-grown graphics processing units, as the US has tightened export curbs on advanced AI products from the likes of Nvidia.
