China's AI Chip Titans Report 2026 Half-Year Results: Revenue Soars but R&D and Profitability Diverge

In the first half of 2026, demand for AI computing power in the Chinese market continued to rise sharply, leading both major domestic AI chip firms 'Moore Threads' and 'Cambricon' to achieve substantial revenue growth. However, the two companies exhibited marked differences in R&D investment, profitability, and stage of development.

Revenue Growth Aligns, but Profitability Diverges

According to their 2026 interim financial reports, Moore Threads recorded operating revenue of RMB 1.736 billion, representing a year-on-year increase of 147.42%. This growth was primarily driven by accelerated commercialization in smart computing, cloud PCs, and edge terminals. Although the company remains in a high-investment phase for market promotion and has yet to turn a profit, its net loss attributable to the parent company narrowed to RMB 11.56 million—a 95.73% reduction compared to the same period last year—indicating improved operational performance.

In contrast, Cambricon, which has already entered a phase of scaled profitability, delivered even more impressive results. Its first-half revenue reached RMB 5.996 billion, up 108.13% year-on-year, with net profit attributable to the parent company reaching RMB 2.311 billion—an increase of 122.61%. Both revenue and net profit more than doubled, demonstrating strong economies of scale.

Divergent R&D Investment Intensity

On the R&D front, Moore Threads invested RMB 769 million in the first half, a 38.16% increase year-on-year, resulting in a high R&D expense ratio of 44.30%. Cambricon’s R&D expenditure stood at RMB 702 million. As its revenue base expanded, its R&D expense ratio declined further from previous highs to 11.72%.

Additionally, on August 10, Moore Threads announced plans to issue H-shares and apply for listing on the Main Board of the Hong Kong Stock Exchange, aiming to deepen its international footprint and attract top-tier talent.

Inventory and Supply Chain Pressures Emerge

With rapid business expansion, both companies face mounting inventory pressures due to rising raw material and outsourcing costs. As of June 30, 2026, the book value of inventories for Moore Threads and Cambricon stood at RMB 3.55 billion and RMB 8.248 billion, respectively, with inventory turnover days extended compared to the same period last year.

Regarding these supply chain and high-inventory challenges, GF Securities noted in a research report that Cambricon’s significant increase in procurement cash outflows and inventory levels actually validates an ongoing stabilization and recovery of its supply chain, potentially providing financial and material support for product deliveries and quarter-on-quarter revenue growth in upcoming quarters.

Meanwhile, CITIC Construction Investment, in a July research report, stated that under the combined pressure of tightened export controls and the dividend from domestic substitution, the next few years will be a critical window for Chinese AI chips to transition from scale validation to profit realization. Profit margins are expected to significantly improve through bundled hardware-software sales models.

Future Performance Outlook and Evaluation Metrics

Looking ahead, Zhejiang Commercial Securities analyzed that based on Cambricon’s equity incentive assessment targets, the company’s 2026 operating revenue must not fall below RMB 13.5 billion. This implies that Cambricon needs to generate approximately RMB 7.5 billion in revenue during the second half—about a 25% increase compared to the first half.

In contrast, Moore Threads’ full-year revenue target for 2026 is no less than RMB 2.5 billion. Its performance benchmark is relatively conservative, and the pace of achievement is expected to be more gradual.