Cambricon, a Beijing-based semiconductor company partly owned by the Chinese state, has reported its strongest financial results to date, including a staggering 4,300% increase in revenue during the first half of 2025. The surge coincides with Nvidia’s absence from the Chinese market, as the U.S. giant recorded no H20 chip sales to China in its latest quarter due to ongoing export restrictions.
Cambricon’s revenue rose to 2.88 billion yuan ($402.7 million), turning the company into China’s most expensive stock, surpassing Kweichow Moutai. Despite this rapid growth, Cambricon’s figures remain far behind Nvidia, which reported $46.7 billion in its second quarter alone. Still, analysts note that the company’s success reflects Beijing’s push for technological self-sufficiency and a broader effort to cultivate local alternatives to U.S. chipmakers.
Experts point out that while Nvidia maintains a superior product line, restrictions imposed by the U.S. government have left a gap for competitors like Huawei, SMIC, and Cambricon to fill. The Chinese government has also actively encouraged the adoption of local chips, citing national security and stability concerns. Recent momentum has been further fueled by AI startup DeepSeek, which optimized its latest model for use with Chinese-made semiconductors.
U.S. policy continues to complicate Nvidia’s strategy. Earlier this year, Washington temporarily banned H20 sales to China before reinstating them with tighter controls. Nvidia CFO Colette Kress stated that the company expects between $2 billion and $5 billion in H20 revenue this quarter if geopolitical hurdles ease, but none of that was included in its third-quarter guidance of $54 billion. She also revealed that a small number of Chinese clients have received licenses for H20 purchases, though shipments have yet to begin.
Analysts suggest that some Chinese chips are already surpassing Nvidia’s H20 in performance, and restrictions on higher-end products will likely accelerate local innovation. Nvidia CEO Jensen Huang has repeatedly criticized U.S. export policies, warning they will only strengthen rivals and reduce American influence in AI development. He estimates the Chinese market represents a $50 billion opportunity for Nvidia this year, provided restrictions are eased.
Looking ahead, Nvidia hopes to introduce its more advanced Blackwell chip in China if U.S. authorities approve. The company continues to emphasize its goal of setting the global standard in AI hardware, while balancing regulatory challenges with competitive pressure from rapidly advancing Chinese firms.
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