Goldman Sachs has upgraded its view on Beijing-based chip designer Cambricon Technologies, lifting the stock’s base-case target price by 50% to CNY 1,835 and suggesting it could reach as high as CNY 3,934 under its most bullish scenario. The shares last traded around CNY 1,243. In a note dated 24 August, the bank said rising capital expenditure by Chinese cloud providers such as Tencent is set to boost demand for Cambricon’s artificial-intelligence processors. It also cited the company’s move to diversify its chipset platforms—highlighted by developments like the DeepSeek 3.1 architecture—and ongoing investment in research and development as key reasons for the revision. Founded in 2016 as a spin-off from the Chinese Academy of Sciences, Cambricon designs AI processors used in data-center servers, edge devices and consumer terminals, earning comparisons with Nvidia. The upgrade underscores investor expectations that domestic suppliers will gain share as China seeks to build a self-reliant semiconductor ecosystem.