Accounts showing rapid growth

Published results show Hygon’s nine-month revenue increased 57.6% to about RMB15 billion, with attributable profit up 45.1%. Cambricon more than doubled revenue to roughly RMB9.5 billion and increased attributable profit by 131.5%. These figures reflect Chinese demand for computing power and substitution with domestic components. By themselves, however, they do not directly compare technical performance with global leaders.

Why shares may fall despite higher profits

Caixin reported both stocks more than 40% below their July highs. A share can fall when the market had already expected even faster growth, valuations are high or investors doubt that margins can last. Research spending remains substantial. Hygon devoted nearly 30% of nine-month revenue to R&D, and Cambricon about 12.9%. Such investment can support technological autonomy, but it consumes resources and must result in competitive products.

An economic and geopolitical issue

Technology restrictions and industrial policies are accelerating the construction of a Chinese ecosystem. This may reshape supply chains, prices and export markets. Autonomy does not mean the absence of dependencies: advanced fabrication, equipment and software remain sensitive constraints.

Conclusion

China shows that real AI growth does not prevent a market correction. Investors are now distinguishing more sharply between volumes sold, the quality of earnings and the price paid to anticipate them. This is general analysis, not advice to buy or sell.