Goldman Sachs Seeks to Capitalize on China’s NVidia Cambricon

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This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Cambricon Technologies, known in China as Hanwuji, is a fabless designer of AI chips that has seen its share price soar by 130 percent over the past two weeks. However, this bullish performance hides a critical risk: customer concentration. Until recently, Cambricon was known as “the king of losses,” having accumulated cumulative losses of around 5 billion yuan ($970 million) through the end of 2024. Its inclusion in the US Commerce Department’s Entities List in 2022 caused a severe downturn.

In April 2023, when the Trump administration imposed stringent licensing requirements on NVIDIA and AMD for selling their GPUs in China, Cambricon saw its business flourish despite the US quasi-export ban on AI chips. Goldman Sachs predicts that by 2028, Cambricon will ship around 1.09 million AI chips, with this number expected to rise to over 2.3 million by 2030.

Cambricon’s recently revamped Siyuan 590 chip offers performance comparable to NVIDIA’s A100 GPU, with a throughput peak (TPP) of 4,493 versus the A100’s 4,992. In the first half of 2025, Cambricon’s revenue skyrocketed by 4,348 percent to $402 million, and its market cap has now surpassed $90 billion—equivalent to 68 percent of SK Hynix’s market capitalization despite generating only 1.4 percent of the South Korean giant’s revenues.

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October 8, 2025

Goldman Sachs recently increased its target price for Cambricon shares from 2,053 RMB to 2,104 RMB within two weeks.

However, this rapid growth and high valuation are risky due to Cambricon’s heavy reliance on a single customer. The top five customers account for 94.6% of sales, with one client alone comprising 79.1%. This means that a significant portion of Cambricon’s revenue comes from a single source, highlighting chronic customer concentration risk.

Despite these risks, Goldman Sachs’ recent target price hikes suggest that Cambricon shares could continue to rise in value.