Macquarie Backs Chinese AI Chip Stocks, Sees Cambricon Rising More Than 50%
Updated
Updated · CNBC · Jul 5
Macquarie Backs Chinese AI Chip Stocks, Sees Cambricon Rising More Than 50%
2 articles · Updated · CNBC · Jul 5
Summary
Macquarie initiated coverage on five Chinese AI chip makers and named Shanghai-listed Cambricon its top pick, with a 2,060 yuan price target implying more than 50% upside from Friday's close.
The bank said China's AI, domestic LLM developers and token economy have reached a point where local chip demand can accelerate, while Beijing's support for domestic suppliers has improved growth visibility.
Biren Tech is Macquarie's preferred Hong Kong-listed name, with a HK$140 target worth more than double its latest close; Iluvatar CoreX and MetaX also made its favored list.
Hygon was rated underperform on market-share concerns, even though IDC data cited by Macquarie showed it ranked third in China's AI chip shipments last year behind Huawei's Ascend and Cambricon.
The call underscores how U.S. export controls and China's push to replace Nvidia GPUs are increasingly steering investor attention toward listed domestic AI chip challengers.
Can China's smaller AI chip firms survive in the shadow of Huawei's overwhelming market dominance?
Is China turning its chip disadvantage into a cost advantage for global AI dominance?
Could China's billion-dollar bet on glass substrates upend the global semiconductor supply chain?
Cambricon’s Trillion-Yuan Surge: Inside China’s Explosive AI Chip Market, Risks, and Global Impact (2025–2026)
Overview
Cambricon Technologies has quickly become a major force in China’s AI chip sector, drawing strong interest from investors thanks to its robust financial performance and strategic importance. After turning profitable in fiscal year 2025, Cambricon announced a generous profit distribution plan, including both cash dividends and bonus shares, signaling management’s confidence in the company’s future. This bold move, combined with significant cash dividends and share repurchases, highlights Cambricon’s commitment to rewarding shareholders and its belief in sustained growth, making it a standout in the rapidly evolving Chinese AI chip market.