China AI Chip Leader Soars 20% Limit as Beijing Warns on Nvidia
- Cambricon soars its daily 20% limit, SMIC gains more than 19%
- Beijing is amping up pressure on AI developers to go local
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Chinese AI chipmaker Cambricon Technologies Corp. soared its 20% daily limit on Monday, leading a sector rally after Bloomberg News reported Beijing was stepping up pressure on domestic companies to ditch Nvidia Corp. processors for local alternatives.
Cambricon, the biggest publicly traded designer of the chips that underpin AI development, gained the maximum allowed in heavy trading. The company led a clutch of chip firms that ranked among the biggest gainers on the benchmark CSI 300 index. Semiconductor Manufacturing International Corp. surged almost 20% in Shanghai, while gear maker Naura Technology Group Co. climbed 9%.