China’s domestic server and chipmaking industry is experiencing a significant surge as local governments invest heavily in computing infrastructure to advance artificial intelligence. The AI Computing Power Concept Index, which includes 54 component stocks, reached an unprecedented high, marking a 166% increase over the past year. This growth is fueled by DeepSeek’s recent adaptation of its data format to accommodate domestic AI chips. At the recent China Computing Power Conference, the government revealed plans to enhance the country’s AI computing capacity by 40% this year. Consequently, Chinese AI hardware companies are gaining popularity among onshore investors, with local suppliers expected to receive the bulk of new orders as part of Beijing’s push for tech self-sufficiency and network security. Cambricon Technologies has emerged as a standout performer, with its stock price soaring 460% in the last year, positioning itself as a potential competitor to US AI chip leader Nvidia.
Are China’s server and chipmakers entering a ‘super cycle’ as AI capacity expands?
