Semiconductor stocks experienced a broad surge on the first trading day of May. Shares of domestic AI chip company Cambricon Technologies Corporation Limited briefly surpassed 1,900 yuan during the session, closing at 1,825 yuan on the 6th, marking a single-day increase of 7.4%. The company's latest market capitalization reached 796.9 billion yuan.
Cambricon once again became the company with the highest share price among A-share listed firms. The rally was not limited to Cambricon; Haiguang Technology rose 16%, Lansus Technology gained 14.8%, Moore Threads increased by 3.3%, and MuXi shares advanced 7%.
As of May 6, the five highest-priced A-share companies were Cambricon, Yuanjie Technology (1,531 yuan), Kweichow Moutai (1,375 yuan), Zhongji Xuchuang (856 yuan), and MuXi (758 yuan). With the exception of Moutai, the other four are all AI-related enterprises.
Cambricon first surpassed Moutai to become the highest-priced A-share stock on August 27, 2025, and has since topped the list multiple times. However, due to significant price volatility, Moutai has held the top position for the majority of the period.
By market capitalization, the top five A-share companies are currently Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, PetroChina, and Contemporary Amperex Technology Co. Limited. Cambricon ranks 20th by market value.
An investor focused on the technology sector cited two main reasons for the recent surge in semiconductor stocks. First, the rapid development of the AI industry has driven performance improvements in the semiconductor sector, particularly for AI chips, with many companies reporting strong profit figures. Second, the A-share market is influenced by trends in U.S. equities, where semiconductor-related stocks have also been climbing steadily.
A hedge fund researcher noted that the significant rise in the U.S. semiconductor sector has spurred a parallel increase in domestic Chinese semiconductor stocks. The core driver of this rally aligns with the logic behind Cambricon's previous surges, centered on the theme of domestic substitution for semiconductors. Spillover effects from bullish sentiment in the U.S. market have led to capital inflows into A-shares, boosting key semiconductor stocks in both China and the United States.
Cambricon's first-quarter 2026 financial report, released on April 29, revealed revenue of 28.8 billion yuan, a year-on-year increase of 159.5%, and a net profit attributable to shareholders of 10.1 billion yuan, up 185% compared to the same period last year. Both figures represent the company's best historical performance. During the earnings conference, Cambricon attributed the growth to sustained rising demand for computing power in the artificial intelligence industry.
The company returned to profitability in 2025. According to its annual report, full-year revenue reached 64.9 billion yuan, a surge of 453.2% year-on-year, with net profit attributable to shareholders of 20.6 billion yuan.
On May 4, investment bank Goldman Sachs issued research reports on Cambricon and Inspur Information, centering its analysis on the "rise of domestic AI chips." The firm raised its profit forecast for Cambricon and increased the target price from 2,104 yuan to 2,406 yuan. Goldman Sachs believes the domestic AI chip supply chain is transitioning from catching up with foreign products to independently meeting the substantive needs of major domestic internet companies.
In April, financial services firm Morgan Stanley noted that Cambricon's first-quarter revenue growth of 160% year-on-year exceeded both the bank's and market expectations, driven by strong shipments of the Siyuan 590 chip. The company's prepayments surged 155% quarter-on-quarter to 1.9 billion yuan, supported by new chip production orders, with significant shipment growth expected starting in the second quarter of 2026.
U.S. semiconductor stocks also rose across the board on May 6. The Philadelphia Semiconductor Index, which includes 30 U.S.-listed semiconductor companies, gained over 4%. Intel surged more than 12%, bringing its year-to-date increase to nearly 200%, while SanDisk and Micron Technology each rose over 11%, both hitting record highs. Qualcomm advanced more than 10%. Year-to-date, the Philadelphia Semiconductor Index has climbed approximately 50%.
The core driver behind the performance growth of Cambricon and other semiconductor companies is the rapid expansion of AI-related industries. According to corporate financial reports, the combined planned capital expenditures for Amazon, Microsoft, Google, and Oracle in 2026 exceed 5.7 trillion U.S. dollars, a year-on-year increase of about 59%. Chinese tech giants also significantly increased capital spending in 2025, with ByteDance and Alibaba each exceeding 100 billion yuan, and Tencent and Baidu allocating between 50 billion and 80 billion yuan.
A substantial portion of capital expenditures by today's technology companies is directed toward computing power. Combined with factors such as export controls, domestic chip companies are entering a period of explosive performance growth.
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