(Yicai) Aug. 29 -- Shares of Cambricon Technologies, which became the Chinese mainland’s most expensive listed stock this week, slumped after the major artificial intelligence chipmaker alerted investors to trading risks after its stock price more than doubled in value over the past month.

Cambricon [SHA: 688256] closed 6 percent down at CNY1,492.49 (USD209.23) in Shanghai today, after tumbling by as much as 10.6 percent at one point. The stock has climbed 149 percent since July 24 and has overtaken multi-year leader Kweichou Moutai as China’s most expensive. Goldman Sachs recently raised its 12-month price target for Cambricon by 50 percent to CNY1,835.

The share price may be detached from fundamentals, the Beijing-based company said in a stock exchange filing yesterday, noting its price-to-earnings ratio is more than 5,000 times, far higher than the industry average.

Revenue is expected to soar 317 percent to 483 percent to between CNY5 billion and CNY7 billion this year, Cambricon also said. It jumped 66 percent to CNY1.2 billion last year. The guidance is a preliminary estimate and does not constitute any substantial commitment to investors, the firm noted, adding that investors and relevant parties should be mindful of investment risks. 

Two days ago, Cambricon reported a net profit of CNY1 billion (USD140 million) for the six months ended June 30, versus a CNY530 million (USD74.1 million) loss a year earlier, driven by growing domestic demand for semiconductors amid a national push for technological self-reliance. Revenue skyrocketed 44 times to CNY2.9 billion.

Cambricon attributed its first-half gains to the core strengths of its AI chip products and to expanded technical collaborations with leading players in large AI models, internet platforms, and other sectors.

China has made semiconductor self-reliance a national priority, accelerating investment in domestic chip design and manufacturing. The cabinet issued new guidelines on Aug. 26 to advance its AI Plus initiative, a push to speed up the use of AI across industries. The policy is expected to boost demand for domestic AI suppliers such as Cambricon.

Editor: Martin Kadiev