[News] China’s AI Chip Makers Make Waves: Cambricon 1H26 Net Profit Surges 123%, Moore Threads Eyes HK Listing

China’s AI chip industry continues to gain momentum. According to Cailian Press, Cambricon reported revenue of RMB 5.996 billion in 1H26, up 108.13% YoY, while net profit attributable to shareholders surged 122.61% to RMB 2.311 billion. Adjusted net profit excluding non-recurring items rose 137.30% to RMB 2.166 billion.

The strong growth was driven mainly by continued market expansion and broader AI adoption, the report indicates. Cambricon deepened cooperation with leading financial and internet companies during the period, driving large-scale deployment of its products across both sectors. Its cloud product line generated RMB 5.994 billion, accounting for 99.98% of total revenue. The company also expanded support for major Chinese open-source AI models, including GLM, DeepSeek, Qwen, Kimi, and MiniMax.

Alongside its commercial expansion, Cambricon continued to increase investment in R&D, with spending rising 29.63% YoY to RMB 702 million in 1H26. The report also notes that the company filed 55 new patent applications during the period, including 53 invention patents and two utility model patents, while receiving 101 new invention patent grants.

Cambricon Boosts Procurement as Material Costs Rise

Cambricon is benefiting from growing demand for domestic AI chips. As noted by Exmoo News, U.S. restrictions on NVIDIA’s high-end AI chip exports to China are creating more room for local suppliers. ByteDance is reportedly Cambricon’s largest customer, with pre-orders reaching 200,000 chips.

Still, Cambricon’s growth momentum showed signs of moderating in Q2. According to China Fund News, net profit rose from RMB 1.013 billion in Q1 to RMB 1.298 billion in Q2, while YoY growth slowed from 185.04% to 90.11%. The company is also navigating rising material costs. China Fund News notes that Cambricon stepped up raw material procurement in Q2 as it pursued strategic inventory buildup to address higher prices. By quarter-end, net cash flow from operating activities fell 65.83% YoY and 62.67% QoQ to RMB 311 million, mainly due to higher external procurement and tax payments.

China’s AI Chip Makers See Strong Growth

Other Chinese AI chip designers are also reporting strong earnings. According to Wallstreet.cn, Hygon expects 1H26 revenue of RMB 8.5–9.3 billion, up 55.56–70.20% YoY, and net profit of RMB 1.7–1.83 billion, up 41.50–52.32%. Excluding share-based compensation, net profit could reach RMB 2.17–2.3 billion, up 74.27–84.71%, highlighting stronger underlying profitability.

Meanwhile, Chinese GPU maker Moore Threads reported 1H26 revenue of RMB 1.736 billion, up 147.42% YoY and already above its full-year 2025 revenue of RMB 1.506 billion, according to The Paper. Gross profit rose 103.78% to RMB 989 million, while its net loss narrowed 95.73% to just RMB 11.56 million, bringing the company significantly closer to profitability. The Paper adds that Moore Threads also plans to issue H-shares and seek a Hong Kong listing, potentially giving the Chinese GPU maker dual A-share and H-share listings following its 2025 STAR Market debut.

According to TrendForce, the Chinese government is actively encouraging the adoption of domestic AI chips this year, with policy support likely to prioritize high-potential domestic players. Meanwhile, the local ecosystem is maturing in advanced foundry nodes, advanced packaging, and thermal management, shifting China’s AI infrastructure from heavy reliance on foreign GPUs toward a dual-track model of “domestic GPUs + proprietary ASICs.” Domestic solutions are on track to capture nearly 90% of China’s high-end AI chip market in 2026.

Read more

• [News] China GPU Race Intensifies: Cambricon Turns Profitable in 2025; Moore Threads, MetaX Narrow Losses
• China’s Aggressive Push for High-End AI Chip Autonomy
• [News] Moore Threads, MetaX Reportedly Top NVIDIA in R&D Ratios as China A-Share Chip R&D Hits Record ¥107B in 2025

(Photo credit: Cambricon)