Cambricon's Revenue Growth Slower than Expected

Dow Jones10-26

0406 GMT - Cambricon Technologies' revenue growth was slower than expected despite more-than doubling in 3Q, Bernstein analysts say in a research note. The market had anticipated a substantially sharper increase, especially given the 2Q revenue miss that potentially delayed some revenue recognition to 3Q, they say. A high-bandwidth memory chip shortage, manufacturing constraints and revenue recognition delays have likely weighed on the Chinese chip maker's revenue growth, they say. However, Cambricon's continued margin expansion is consistent with the strong demand and improved bargaining power for domestic artificial-intelligence fabless suppliers amid constrained supply, they note. Shares are last 1.4% higher at 945.50 yuan.

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