🔥 Cambricon: The ‘Chinese NVIDIA’? Analyzing China’s New Chip Dominator
Cambricon is referred to by the market as the ‘Chinese version of NVIDIA’ [smirk emoji]? However, the gap between the two is currently vast. NVIDIA is the ‘champion of the chip industry’, while Cambricon is a ‘new potential stock’.
Below, we will decode from three aspects: moat, advantages and disadvantages, and investment value.
PS. Investing without considering the moat = blind investment [doge emoji]
Moat Advantages [Policy + Technology]
Core player in domestic substitution: Under the U.S. chip ban, Cambricon has become the only full-stack AI chip supplier in China, with a projected revenue surge of 65.6% in 2024, and a first-time profit of 280 million in Q4!
Customized chips: Compared to NVIDIA’s general-purpose GPUs, Cambricon’s customized chips are superior in energy efficiency, specifically targeting domestic AI computing power demands.
Abundant production capacity: By Q1 2025, inventory is expected to soar to 2.76 billion (up 55% quarter-on-quarter), with prepayments of 970 million, indicating sufficient order reserves.
🆚 Chip giant NVIDIA
Technical Comparison
– NVIDIA has monopolized 90% of the global market, while Cambricon’s self-developed BANG language and Neuware ecosystem are just getting started.
– The computing power of NVIDIA’s H100 single card is three times that of Cambricon’s Siyuan 590! However, Cambricon’s power consumption is 30% lower [thumbs up emoji].
Market Comparison
– NVIDIA’s clients are spread across the globe (OpenAI, Microsoft, etc.), while Cambricon currently relies heavily on major domestic companies [smirk emoji] (high customer concentration, which is not good…).
– NVIDIA’s quarterly profit is 19.3 billion, while Cambricon is only expected to achieve quarterly profitability in 2024.
Development Opportunities
– China’s demand for intelligent computing power is expected to experience leapfrog growth by 2025!
– The customized chip market is projected to reach 90 billion by 2027!
💰 Investment Suggestions
Short-term (within 1 year)
– Under policy catalysis, it may continue to rise, but at a market value of 330 billion, it corresponds to a PS ratio of 333 times! NVIDIA generally has a PS ratio of 29 times, and Cambricon’s bubble is too obvious [crazy emoji].
– A small position can be tested below 550-570 yuan, with a focus on quarterly order changes. As of June 17, 2025, it is still at 598 yuan.
[Right arrow emoji] Long-term (3-5 years)
– Optimistic scenario: If the domestic substitution rate exceeds 30%, net profit may reach 3.6 billion by 2027.
– Conservative scenario: Failure in technological iteration may retreat to a market value of 50 billion.
– It is recommended to gradually build positions below 400 yuan! It can still be held long-term.
The essence of investment logic is betting.
– High-risk preference investors: Can participate in policy-driven market fluctuations.
– Long-term investors: Need to endure volatility and wait for technological breakthroughs and ecosystem maturity.
In summary: This is not the next NVIDIA, but it may be a key piece in China’s AI chip autonomy—an investment choice with high odds and medium probability of success.
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