Chinese smart chip company Cambricon continue to surge in Shanghai, jumping over 6% to hit $676.77 at one point, marking a new record high, with its market capitalization exceeding 280 billion yuan. The stock has skyrocketed 400% year-to-date.
Analysts attribute this sharp rally to factors including the semiconductor stock rally in the US and the recent rebalancing of major stock indices.
On November 29, the China Securities Index Company announced its periodic adjustment for the blue-chip SSE 50 Index, adding Cambricon to the index, taking effect after the close on December 13. In addition, the CSI A500 Index underwent its first adjustment, replacing 21 constituent stocks and adding Cambricon to the stock, also effective after the close on December 13.
However, despite its record-breaking stock performance, analysts caution that Cambricon’s financial results significantly lag behind its soaring stock price. Since its IPO in 2020, the company has recorded consecutive years of losses through 2023.
