Cambricon, Chinese AI Chip Firm, First to Reach CNY1 Trillion Market Cap

June 30 — A leading artificial intelligence chip developer experienced significant gains among China’s AI-related stocks amid a surge in global investment in the sector. The company’s shares hit a record high and briefly became the first stock on Shanghai’s tech-focused Star Market to reach a market capitalization of 1 trillion yuan (about USD 147.2 billion).

After reaching CNY 1,620 per share earlier today, the company closed at CNY 1,595.55 (USD 235), marking a 7.7 percent increase and bringing its year-to-date growth to 71 percent.

Other key players in the AI infrastructure sector also saw optimistic moves. A subsidiary of a Taiwan-based electronics manufacturer, a company specializing in industrial internet solutions, ended the day up by 3.7 percent at CNY 72.15 (USD 10.62). An optical communication device manufacturer increased by 4.1 percent to CNY 1,270, while a firm that develops CPU chips gained 4.4 percent to CNY 370.30.

International market analysts project global business spending on AI to reach approximately USD 940 billion this year and potentially grow to USD 2.1 trillion by 2029, according to market research firm’s senior vice president during an industry forum in April. The tech sector is entering its most robust growth phase in the past three decades.

Recently, the South Korean government announced the country’s largest AI investment to date, collaborating with Samsung Electronics and SK Group. The plan involves a total investment of KRW 1.46 quadrillion (roughly USD 943.6 billion), with Samsung and SK committing KRW 2.66 quadrillion and KRW 2.1 quadrillion, respectively.

“The return on investment for AI has already been demonstrated,” stated the CEO of a major US chip manufacturer during last week’s shareholders’ meeting. “This infrastructure development will be evaluated over multiple decades, similar to other critical systems like power grids, transportation networks, and the internet.”

He further emphasized, “We believe this will become the largest infrastructure project in human history.”

Reporters: Dou Shicong, Tom Litting