Beijing-based AI chipmaker Cambricon Technologies, widely seen as a potential alternative to Nvidia in the Chinese market, has issued a rare warning about supply chain risks and excessive speculation in its shares, which have gained 533 per cent in the past 12 months.
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The company’s Shanghai-listed stock nearly doubled in the last month on a wider rally fuelled by China’s favourable policy support of local artificial intelligence chips and a new AI model from DeepSeek tailored for upcoming domestic chips.
“[Our] stock price risks deviating from current fundamentals, and investors participating in trading might face substantial risks,” the company said in a filing to the Shanghai Stock Exchange on Thursday.
Cambricon also reminded investors that it was subject to US export restrictions that made it vulnerable to supply chain risks.
“The company and some of its subsidiaries have been placed on the Entity List (of the US Commerce Department), and this will pose risks to the stability of the company’s supply chain and may adversely affect its operating performance,” it said.
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The warning came after its shares overtook liquor distiller Kweichow Maotai as the costliest stock in China, prompting the country’s retail investors to hail it as “the new king” in the onshore stock market.