This chip stock is soaring amid Nvidia’s China problems. The AI war has taken a turn.

Cambricon shares, Nvidia’s Saying this on Thursday, 16% higher in Shanghai trade not guessing Sales of the H20 chip for the Chinese market in the current quarter.

Cambricon in the light of spot after reporting that his three -month income has increased this week about 4,000% Increasing the demand for domestic AI chips. According to Wall Street Journal, the Chinese government prevented companies from buying NVIDIA’s hardware.

This led to an explosion in the stocks of local Chinese companies. Cambricon shares increased more than six times last year.

It would probably depend on how far the rally can go to Nvidia’s Beijing and Washington to allow Chinese customers to sell AI chips. Nvidia CEO Jensen Huang said that China is a $ 50 billion market for the AI ​​infrastructure of the AI ​​infrastructure and that it could sell more advanced Blackwell chips in the future.

Cambricon’s chips are not as good as Nvidia’s, but they are developing – according to the South China Morning Post, the Siyuan 690 processor is expected to approach the performance of the H100 of the Nvidia. This may make it difficult for factors such as energy use and software compatibility to head -to -head comparison, but the US will be superior to the H20, which deliberately limits export controls.

Cambricon did not answer Barron’s request for comments.

Another problem for Cambricon is whether it can produce sufficient scales, except for performance. According to Goldman Sachs, AI chip shipments will come to approximately 143,000 units this year, while Nvidia sent about one million of H20 chips for the Chinese market last year.

According to the Financial Times, Chinese chip manufacturers aim to double the output of AI chips in 2026.

Although new plants are designed to support the output of Huawei Technologies, new plants reported that small designers like Cambricon will allow them to increase their output.