Cambricon is one of China’s most prominent listed domestic AI chip makers. Its Q1 2026 earnings: Rmb2.88bn revenue (+160% YoY), Rmb1.01bn net profit (+185%). Operating cash flow swung from negative Rmb1.4bn to positive Rmb834mn. A single quarter roughly matched the entire first half of 2025.

The profitability debate is over. The harder question is what 348 times earnings is actually pricing. My read: investors are underwriting something beyond a chip company.

This is my last update before China’s May Day holiday (5 days off). I will be back next week.