Changing times: Cambricon tops Moutai as China’s costliest stock as chips trump baijiu

Cambricon Technologies became the costliest stock in mainland China’s equities market, as the Beijing-based chipmaker replaced the liquor distiller Kweichow Moutai in a sign of the rising significance of artificial intelligence (AI) in the world’s second-largest capital market.

Trading under the symbol 688256 in Shanghai, Cambricon’s shares jumped 11.60 per cent on Monday to a record 1,384.93 yuan, giving it 579.38 billion yuan (US$81 billion) in market value. The stock has more than doubled in price this year and surged fivefold in the past 12 months.

At that price, Cambricon is trading at a staggering 4,554 times historical earnings, making it the most expensive stock in China. Moutai, the liquor distiller that produces the fiery baijiu known as Chairman Mao Zedong’s favourite tipple, had previously commanded the highest price-earnings ratio on the exchange.

“China’s AI development is entering a stage of software-hardware collaboration, [which] may meaningfully reduce the reliance on overseas computing power,” wrote Cinda Securities’ analyst Mo Wenyu, who said that Cambricon now belonged to a list of stocks that were “worth watching”.

An undated photograph of a new-generation artificial intelligence (AI) chip made by Cambricon Technologies. Photo: Handout
An undated photograph of a new-generation artificial intelligence (AI) chip made by Cambricon Technologies. Photo: Handout

“We believe the release of [DeepSeek’s AI model] V3.1 has created a strategic opportunity for the domestic AI chip industry chain, and the process of AI chip substitution is likely to accelerate,” Mo wrote.

Cambricon is accessible to international investors through the so-called Northbound Connect scheme via the Hong Kong stock exchange.

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