(Yicai) Aug. 27 -- Cambricon Technologies’ shares rose after the leading Chinese artificial intelligence chipmaker reported record profit for the first half of the year, driven by growing domestic demand for semiconductors amid a national push for technological self-reliance.

Cambricon [SHA: 688256] finished 3.2 percent higher at CNY1,372.10 (USD191.63) a share in Shanghai today, after earlier soaring by 10.2 percent and briefly becoming China’s most expensive mainland-listed stock.

The shares have gained 135 percent since July 24, as investors bet on China’s homegrown chips replacing imports. Goldman Sachs recently raised its 12-month price target for the stock by 50 percent to CNY1,835. The US investment bank also raised its forecast for the firm's net profit by 59 percent for this year, 28 percent for next year, and 29 percent for 2027 in anticipation of a jump in AI chip shipments.

Net profit topped CNY1 billion (USD140 million) in the six months ended June 30, versus a CNY530 million (USD74.1 million) loss a year earlier, Cambricon said in an earnings report released yesterday. Revenue skyrocketed 44-fold to CNY2.9 billion.

The Beijing-based company attributed its first-half gains to the core strengths of its AI chip products and to expanded technical collaborations with leading players in large AI models, internet platforms, and other sectors.

China has made semiconductor self-reliance a national priority, accelerating investment in domestic chip design and manufacturing. The cabinet issued new guidelines yesterday to advance its Artificial Intelligence Plus initiative, a push to speed up the use of AI across industries. The policy is expected to boost demand for domestic AI suppliers such as Cambricon.

Cambricon’s research and development spending rose 2 percent in the six months, equivalent to 16 percent of the firm’s revenue, while its R&D headcount reached 792, or 80 percent of its workforce.

For the second quarter, net profit was CNY683 million, surging 3.2 times from a year earlier and 92 percent on the prior quarter, while revenue topped CNY1.8 billion, up 44-fold year on year and 59 percent quarter on quarter.

Editor: Martin Kadiev