(Bloomberg) — Chinese AI chipmaker Cambricon Technologies Corp. climbed its daily limit by 20% on Monday, leading a sectoral rally after Bloomberg News reported that Beijing was stepping up pressure on domestic companies to abandon Nvidia Corp. processors. for the benefit of local alternatives.
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Cambricon, the largest publicly traded designer of chips that underpin AI development, has secured the maximum allowed in intensive trading. The company led a group of microchip companies that ranked among the biggest gainers on the benchmark CSI 300 index. Semiconductor Manufacturing International Corp. jumped nearly 20% in Shanghai, while gear maker Naura Technology Group Co. climbed 9%.
Chinese regulators have discouraged companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, Bloomberg News reported Friday evening. This policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid crippling its own AI startups and escalating tensions with the United States.
The move aims to help domestic AI chipmakers gain market share, while preparing local companies for possible additional U.S. restrictions. The country’s largest AI processor makers are Cambricon and Huawei Technologies Co. Nvidia shares fell 2% on Friday.
Earlier this year, Beijing also asked local electric vehicle makers to source more from local chipmakers, as part of its campaign to achieve self-sufficiency in critical technologies.
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