China’s top-performing stock of 2024 is expected to see additional tailwinds into next year from the nation’s drive for greater self-sufficiency in artificial intelligence (AI).
Shares of AI chip designer Cambricon Technologies have climbed 383 per cent this year, topping the benchmark CSI 300 Index and driving its market value to US$37 billion. The Shanghai-listed stock has even outpaced global AI chip leaders Nvidia and Taiwan Semiconductor Manufacturing.
Cambricon has climbed on investor enthusiasm over China’s stepped up support for the local tech industry in the face of US trade restrictions. The stock may also benefit from its addition this month to the Shanghai Stock Exchange 50 Index, as funds tracking the large-cap gauge add shares.
“The localisation of AI chips has become a big trend,” according to Minsheng Securities. Top domestic manufacturers like Huawei Technologies and Cambricon “continue to catch up with…
