Shares in Cambricon Technologies Corp. surged as much as 20% in Shanghai on 22 August, propelling the artificial-intelligence chipmaker’s market value above RMB 500 billion ($70 billion) for the first time. The jump extended a rally that has seen the stock more than double since July and cemented its status as China’s best-performing major equity in 2024. The latest leg higher followed a statement by Beijing-based start-up DeepSeek that it had adapted its large-language model to run on “next-generation domestic chips”, a move viewed by investors as validation of China’s push for semiconductor self-sufficiency. The momentum was reinforced by reports that Nvidia has suspended production of its H20 processors for the mainland and by signs that regulators are urging customers to prioritise locally made components. Cambricon’s gains rippled across the sector, sending the CSI Semiconductor Industry Index up 10% and the CSI AI Index more than 6%. Peers Semiconductor Manufacturing International Corp. and Hua Hong Semiconductor have risen about 96% and 80% respectively so far this year. The broader market also benefited: Chinese A-shares touched a 10-year peak and daily turnover exceeded RMB 2 trillion for an eighth consecutive session, the longest streak on record.