Cambrian Technology’s Remarkable Financial Turnaround: The King of Cold AI Chips
Summary:
- Cambrian Technology, the first domestic AI chip stock in China, achieved its first annual profit in 2025 after years of losses.
- The company projects an operating income increase of up to 496% in 2025, driven by soaring demand for AI computing power.
- Cambrian’s diverse AI chip series, including the Siyuan line, signifies its commitment to innovation despite previous setbacks.
On January 30, Cambrian Technology, often referred to as the "King of Cold," made headlines as it released its ambitious performance forecast for 2025. After a decade marked by challenges, the company has achieved profitability for the first time since its inception, showcasing a promising shift in its financial landscape.
Impressive Forecast for 2025
Cambrian anticipates an operating income ranging from 600 million to 700 million yuan for 2025, representing a staggering increase of 410.87% to 496.02% compared to the same period in 2024. This turnaround marks a significant milestone in the company’s journey, as it aims to transition from previous losses to a robust net profit attributable to its parent company. The expected net profit is projected to be between 1.85 billion to 2.15 billion yuan, underscoring Cambrian’s potential for substantial growth in the competitive AI chip market.
Factors Driving Growth
In a recent announcement, Cambrian highlighted the reasons behind this impressive performance reversal. The company has heavily invested in research and development, focusing on innovating their AI chip product offerings. With the surge in demand for computing power within the AI industry, Cambrian has effectively leveraged its competitive product advantages, enhancing market presence and pushing for the implementation of AI applications across various sectors. This strategy has evidently paid off, leading to a significant rise in operational performance and profitability.
Cambrian, established in 2016 and listed on the Science and Technology Innovation Board in 2020, initially grappled with substantial financial losses, exceeding 5 billion yuan over six years. However, the tide turned in the fourth quarter of 2024 when the company reported its first quarterly profit, culminating in the anticipated year-long profitability in 2025.
AI Chip Innovations
Cambrian is renowned for its AI chip series, although its latest offerings on the official site, the Siyuan 370 series, appear outdated compared to competing technologies. However, it has made strides with its Siyuan 590 chip, launched in 2023, designed to compete with NVIDIA’s A100. The forthcoming Siyuan 690 chip reportedly boasts performance capabilities that approach 80-90% of the NVIDIA H100, showcasing Cambrian’s growing technological prowess.
Rumors of a new generation product, the Siyuan 790, have also surfaced. While there is speculation about its features and performance, the details remain ambiguous, highlighting the company’s ongoing evolution in the competitive landscape of AI technology.
Market Performance
As of the end of trading on January 30, Cambrian’s stock was valued at 1,258.89 yuan, with a market capitalization exceeding 530 billion yuan. The stock price had peaked at around 1,600 yuan last year, representing a market value nearing 700 billion yuan. These fluctuations indicate strong investor interest and confidence in Cambrian’s future potential.
Conclusion
Cambrian Technology’s remarkable turnaround into profitability and its ambitious growth trajectory mark it as a significant player in the AI chip manufacturing arena. As the demand for advanced computing power continues to escalate, Cambrian’s commitment to innovation and strategic market positioning will be crucial in determining its sustained success. With the groundwork laid for a promising future, industry observers and investors alike will be keen to see how Cambrian continues to evolve in an increasingly competitive landscape.
Cambrian’s ascent as a leader in AI chip technology exemplifies the potential for growth in emerging industries, reinforcing its status as a groundbreaking entity transforming the technological landscape.
