Today, Chinese AI chipmaker Cambricon Technologies Corp. jumped to its 20% daily limit, sparking a rally in the sector. This rise follows a report from Bloomberg News that Beijing is increasing pressure on local companies to replace Nvidia Corp. processors with homegrown alternatives. With this shift, Cambricon is stepping up as a key player in the future of AI technology!
China’s largest publicly traded designer of AI chips, Cambricon, is generating significant buzz in heavy trading. The company’s rapid trading growth has pushed it to the top ranks on the benchmark CSI 300 index, showcasing its rising prominence in the AI sector.
Semiconductor Manufacturing International Corp. made a remarkable leap of nearly 20% in Shanghai, while gear maker Naura Technology Group Co. followed suit with a solid 9% increase. Both companies are capitalizing on the growing momentum in the tech sector!
Late Friday, Bloomberg News revealed that Chinese regulators are advising companies against buying Nvidia’s H20 chips, which are essential for running AI models and are widely used in their development. This move highlights the increasing scrutiny of foreign technology in China’s AI landscape.
Beijing is providing advice on how companies should handle their use of foreign technology instead of imposing strict rules or bans. This approach aims to support China’s own AI startups while also trying to keep relations with the U.S. from getting worse.
In other words, they want to encourage local businesses without putting too many limitations on them or creating more conflict with the U.S.
This move will boost productivity for local AI chipmakers and help them navigate U.S. restrictions. As a result, Nvidia’s shares dropped by 2%, opening new opportunities for local companies like Cambricon and Huawei Technologies Co.
Additionally, earlier this year, Beijing encouraged local electric vehicle makers to source their equipment and machinery from domestic chipmakers. This initiative is designed to foster confidence and trust in the local market for critical technologies.
As China boosts support for local tech companies, Cambricon and Huawei are set to grow in the semiconductor market. This change will increase competition and help China become a strong player in global technology. The next few months will be important as these developments happen!
