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China Just Found Its Nvidia Replacement—And This Stock Has Exploded 125%

Nvidia Corp. (NASDAQ:NVDA), touted as the world's most valuable chipmaker, is still riding high with $4.4 trillion market cap and booming AI demand, but a new China-based chipmaker is stealing the spotlight at home.

Shares of Cambricon Technologies, which only trades in the Shanghai Stock Exchange market, have more than double this month, surging 125%, compared to the boringly flat performance of Nvidia.

Nvidia Crushed Earnings—But China Is Gone

Let's be clear: Nvidia posted strong fiscal second quarter results. Revenue jumped 56% year-over-year to $46.7 billion, adjusted EPS rose 53%, and demand for AI chips shows no sign of slowing. The company even expects another 50% revenue increase in the current quarter.

But there's one glaring hole in the numbers: zero H20 chip sales in China.

That's a direct hit from the U.S. government's export ban on Nvidia's top AI chips to China.

Nvidia said China made up 13% of its revenue last fiscal year, and the crackdown has already cost the company big, including a $4.5 billion charge last quarter tied to unsold inventory.

Cambricon Chart