AsianFin -- Shares of Chinese AI chipmaker Cambricon surged last week, driven by two major catalysts: Nvidia’s halt of H20 chip production and renewed investor interest in DeepSeek technologies, making domestic chip stocks the strongest performers on the A-share market.

On Friday, Cambricon hit its daily trading limit, closing at US$171 per share, ranking just behind Kweichow Moutai in market capitalization, which now exceeds US$71.5 billion.

Since July 11, Cambricon’s stock has surged 137% in just over a month. Looking further back, the stock has skyrocketed from under US$6.8 at the start of 2023 to its current level, representing a more than 25-fold increase.

Adding to the momentum, global investment bank Goldman Sachs raised its target price for Cambricon-U by 50% to US$1,835 on August 24. If the stock reaches this target, Cambricon’s market value could approach US$106 billion.

The company’s founder, part of the post-1985 entrepreneurial generation, now holds a personal fortune exceeding US$150 billion, cementing his status among China’s wealthiest tech innovators.

Cambricon, a leading developer of AI semiconductors, has benefited from rising domestic demand for high-performance chips, as well as supportive government policies promoting homegrown AI technology. Analysts say the stock’s rapid ascent reflects both market enthusiasm for China’s AI sector and confidence in Cambricon’s long-term growth potential.