SHANGHAI (Reuters) -Chinese AI chipmaker Cambricon Technologies slipped in morning trade on Thursday, as investors booked profits after a meteoric August rally fuelled concerns of rebalancing by index-tracking funds.
Often seen as China’s answer to U.S. AI darling Nvidia, Cambricon declined around 12% on the day and looked set to mark its steepest intraday percentage drop since January 2025.
The stock had more than doubled in August, lifting its weight on the tech-focused STAR50 Index to 15%, breaching the 10% cap for a single stock and stoking concerns of rebalancing when the index resets on September 12.
Meanwhile, profit-taking also dragged the semiconductor shares traded onshore nearly 6% lower and pulled the STAR50 Index down more than 5%.
Last week, the Beijing-based company issued a risk warning to investors in a stock exchange filing, citing a sharp rise in its share price since late July, to curb speculative buying and cooling market enthusiasm.
Tech and artificial intelligence stocks have been the key drivers of China’s stock bull run this year, with the STAR50 Index and AI shares rising 26% and 47%, respectively, year-to-date.
Meanwhile, risk sentiment was dampened by a media report that China is considering measures to cool its stock market amid concerns over the sharp rally since early August. The benchmark CSI300 Index gained 10% in the last month.
(Reporting by Shanghai Newsroom; Editing by Sumana Nandy and Kim Coghill)
