Chinese chipmaker Cambricon reports a sharp increase in revenue in the third quarter, but growth falls short of market expectations. The company continues to be hampered by production constraints and a shortage of advanced memory chips.
Revenue rose 105 percent to 3.53 billion yuan, equivalent to SEK 5.3 billion, compared with analysts’ expectations of 6.26 billion yuan.
Net profit simultaneously increased 148 percent to 1.4 billion yuan, Bloomberg News reports.
Cambricon is benefiting from China’s efforts to develop domestic AI chips following the US export restrictions on Nvidia. At the same time, production is being constrained by a shortage of advanced memory chips and access to modern manufacturing technology.
The company’s market capitalization has nearly halved since the stock reached record levels in June.
