Chinese AI chipmaker Cambricon warns investors, shares fall 9%
Cambricon Technologies, a major Chinese AI chip maker, saw its shares fall almost 9% on Friday after it told investors to watch out for significant risks.
The warning followed a month-long surge in Cambricon's stock price, which had jumped 134%—fueled by hype, rumors about products that don't exist, US sanctions talk, and tech challenges.
Cambricon's ambitious revenue targets and market volatility
Investors have been piling in thanks to hopes that Beijing will keep backing AI and other new tech—even as the economy faces headwinds.
Cambricon is aiming big: it expects revenue to jump from 1.2 billion yuan last year to as much as 7 billion yuan this year.
Meanwhile, another company in the sector—Dosilicon Co.—had trading paused due to wild price swings, showing just how jumpy China's chip market is right now.
Despite all this turbulence, Cambricon remains focused on its growth strategy.