The AI Stock Surge Triggered by DeepSeek
On Friday, August 22, a single comment from DeepSeek in the留言区 (comments section) ignited a rally in A-share semiconductor and computing power stocks. Leading companies like Cambricon, Hygon Information, and Sugon saw their shares hit the daily limit-up. Cambricon’s stock price broke through the 1,100 yuan and 1,200 yuan barriers, eventually locking in a 20% gain at 1,243.20 yuan per share, pushing its market capitalization above 520 billion yuan. This surge highlights the growing influence of AI-related news on market sentiment and investor behavior.
Cambricon’s stock has risen nearly 90% since the beginning of the year, making it one of the standout performers in China’s technology sector. The company, which specializes in AI chips and computing solutions, has benefited from increased demand for domestic semiconductor products amid global supply chain uncertainties. The rally also reflects broader optimism about China’s push toward technological self-reliance and innovation in artificial intelligence.
Zhang Jianping’s Strategic Positioning
Veteran investor Zhang Jianping (章建平) had positioned himself advantageously ahead of this surge. At the end of last year, he became one of Cambricon’s top ten shareholders, holding 5.3388 million shares with a reference market value of 3.513 billion yuan. In the first quarter of this year, he increased his stake by 14%, bringing his total holdings to over 6 million shares valued at 3.792 billion yuan. This strategic accumulation of shares ahead of the rally demonstrates his ability to identify high-potential opportunities in the market.
Even without considering the additional shares acquired in Q1, Zhang’s initial investment of 5.3388 million shares would have generated paper profits of around 3 billion yuan. Based on his Q1 holdings of 6.0863 million shares, he likely saw floating gains of approximately 1.261 billion yuan on August 22 alone. This remarkable return underscores the potential of well-timed investments in high-growth sectors like artificial intelligence.
Zhang Jianping’s Broader AI Portfolio
Beyond Cambricon, Zhang Jianping expanded his investments in AI-related stocks during the first quarter. He took significant positions in four additional companies: Hainan Huatie, Oft Data, Hangzhou Iron & Steel, and Zhongjian Technology. Combined with his Cambricon holdings, the total value of these investments approached 6 billion yuan by the end of Q1. This diversified approach allowed him to capitalize on multiple facets of the AI boom, from computing infrastructure to industrial applications.
His investment in Hainan Huatie amounted to 84.2 million shares, with a reference market value of 899 million yuan. However, by mid-May, he had reduced his stake by 15.3%, bringing his holdings down to 71.3144 million shares. This partial profit-taking suggests a balanced strategy of locking in gains while maintaining exposure to the sector’s growth potential.
Performance of Key Holdings
Hainan Huatie announced its entry into the computing power business in May 2024, with cumulative signed contracts for computing services reaching 24.75 billion yuan by year-end and asset deliveries nearing 700 million yuan. By March of this year, these figures had grown to 66.7 billion yuan in signed contracts and over 900 million yuan in delivered assets. The company’s stock rose nearly 85% during the first quarter, fueled by optimism about its expanding role in China’s computing infrastructure.
Similarly, Oft Data, in which Zhang held 11.6181 million shares valued at 282 million yuan, saw its stock rise over 67% in Q1. As a provider of internet cloud computing and big data solutions, Oft Data benefits from the growing demand for data center services and other internet infrastructure needs. Its operations span more than 30 cities across China, positioning it well for continued growth.
Market Dynamics and Strategic Exits
Zhang Jianping’s investments were not without volatility. In Hangzhou Iron & Steel, he acquired 26.9463 million shares in Q1, but by June 30, he had reduced his position by at least 82%, exiting the top ten shareholder list. The company’s stock had surged nearly 150% in Q1, even recording nine consecutive limit-up days. However, it also issued multiple risk warnings, clarifying that its computing business involved hardware leasing rather than core technology development. This cautious approach highlights Zhang’s willingness to exit positions when fundamentals or market conditions change.
In Zhongjian Technology, Zhang initially held 4.7662 million shares, making him the second-largest流通股东 (tradable shareholder). However, he reduced his stake by nearly 60% by the end of Q2, leaving him with around 2 million shares. Unlike his other AI-focused investments, Zhongjian Technology is linked to embodied AI and robotics, having invested in humanoid robot company 1X Holding AS and partnered with Huawei’s Global Embodied AI Innovation Center. The stock gained 42% in Q1, but Zhang’s partial exit suggests a nuanced view of its near-term prospects.
The Role of DeepSeek and Domestic AI Development
The rally in Cambricon and other AI stocks was partly fueled by developments in domestic AI models like DeepSeek-V3.1, which supports FP8 precision and is optimized for next-generation国产芯片 (domestic chips). As HuaJin Securities noted, support from leading domestic models for local chips is expected to accelerate, benefiting the entire semiconductor产业链 (industry chain) from design and manufacturing to packaging and testing. This trend aligns with China’s broader goals of technological self-sufficiency and innovation.
Government Support and Future Outlook
At the 2025 China Computing Power Conference, government officials emphasized the accelerated construction of computing power platforms nationwide. The Ministry of Industry and Information Technology stated that it would guide regions in rationally布局 (planning) intelligent computing facilities to improve the quality of supply and meet the needs of emerging and future industries. Smart computing power is already being widely used in generative AI models, autonomous driving, embodied intelligence, smart cities, and industrial manufacturing. By 2025, China’s intelligent computing power scale is expected to grow by over 40%, creating sustained opportunities for investors and companies alike.
This supportive policy environment, combined with technological advancements and growing market demand, provides a strong tailwind for AI-related investments. For investors like Zhang Jianping, this means continued opportunities to capitalize on the sector’s growth, though it also requires careful attention to valuation risks and market dynamics.
Key Takeaways for Investors
Zhang Jianping’s success offers several lessons for investors looking to navigate the AI boom. First, early identification of high-potential companies in emerging sectors can yield significant returns. Second, diversification across multiple players in the ecosystem helps mitigate risks while capturing broad-based growth. Third, timely profit-taking and portfolio adjustments are essential to managing volatility and locking in gains. Finally, staying informed about technological developments, policy support, and market sentiment is crucial for making informed investment decisions.
As China’s AI ecosystem continues to evolve, investors should monitor key trends such as the adoption of domestic chips, the expansion of computing infrastructure, and the application of AI in various industries. Companies that demonstrate strong technological capabilities, strategic partnerships, and scalable business models are likely to outperform in the long run.
Looking Ahead: Opportunities and Risks
The rapid growth of China’s AI sector presents both opportunities and challenges for investors. On the one hand, supportive government policies, technological advancements, and increasing market adoption create a favorable environment for growth. On the other hand, high valuations, regulatory uncertainties, and intense competition require careful risk management. Investors should focus on companies with sustainable business models, strong governance, and clear competitive advantages.
For those looking to follow in Zhang Jianping’s footsteps, it is important to conduct thorough due diligence, maintain a long-term perspective, and be prepared for market fluctuations. The AI revolution is still in its early stages, and the companies that succeed will be those that innovate continuously and execute effectively.
In summary, Zhang Jianping’s remarkable gains highlight the potential of strategic investments in China’s AI sector. By leveraging his insights and adapting to market conditions, he has demonstrated how investors can capitalize on one of the most transformative trends of our time. As the sector continues to grow, staying informed and agile will be key to unlocking future opportunities.