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A company, by itself, warns traders of risks after 134% rally in a monthThere is a risk that the stock price may have deviated from the company’s current fundamentals, and investors participating in trading may face significant risks, Cambricon said in its filing to the local exchanges.By Hormaz Fatakia   August 29, 2025, 6:36:59 AM IST (Published)2 Min ReadStocks doubling in a month is no longer a surprise as it once used to be, although such an occurrence does continue to grab eyeballs. But a Chinese AI company has chose to warn traders after its own stock faced such a rally.

AI chipmaker Cambricon Technologies Corp., listed on the Shanghai stock exchange, is the biggest publicly traded chip designer that highlight the development of AI in China. Shares of this company have surged 134% in the 24 trading sessions since July 28, which is nearly 17 times the 7.9% return that the Chinese benchmark CSI 300 has delivered over the same period.

Cambricon's surge is part of Chinese investors doubling down on tech stocks, which have continued to drive the broader market rally, not just in China, but also in the US. The stock closed Thursday's session with gains of 16%, and has gained in six out of the last seven trading sessions. A key trigger behind this move was Goldman Sachs raising its price target on the stock by 50% on a brighter profit outlook.

“The company’s stock price increase has exceeded that of most peers and is significantly higher than the performance of relevant indexes,” the company said in a filing to the Shanghai Stock Exchange. “There is a risk that the stock price may have deviated from the company’s current fundamentals, and investors participating in trading may face significant risks.”

For the full year of 2025, Cambricon has guided for revenue to be between 5 billion to 7 billion Yuan, compared to the 1.2 billion Yuan it reported in 2024. The company also clarified that it has no plans to release any new products and any information in this regard being circulated online is "false."

Chinese equities have added more than $1 trillion to their overall market capitalisation this month, with the CSI 300 recovering more than 20% from the year's low. The recent rally has prompted some brokerages and fund managers to cut back on financing and limit purchases, while the country’s commercial banks are tightening oversight of clients using credit cards to fund stock investments.

The rally in Cambricon has also underscored the shift of retail investors, who dominate the Chinese market, from consumer-led stocks to tech names.

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