Chinese AI Chip Firm Cambricon Dives 9% After Warning of Risks

AI chip designer Cambricon Technologies Corp. plunged almost 9% after warning investors about a doubling in its share price over just a month, a record gain that helped fuel a $1 trillion Chinese market rally.

Cambricon triggered the selloff with a Thursday filing in which it dispelled talk about non-existent products in the pipeline, reminded investors it labors under US sanctions, and stressed the difficulties of ascending the technology ladder. The Shanghai-listed company’s stock dived by the most since April in early Friday trading, while the market stood largely unchanged.