Yuanjie Semiconductor surged to become mainland China's highest-priced stock on Friday, with shares rising as much as 9.6% to a record ¥1,439. This move displaced Kweichow Moutai, which reported its first annual decline in sales and profit in two decades. The rally highlights a broader shift in Chinese markets towards technology and AI-related chipmakers, with the STAR 50 Index up 5.8% this year while consumer staples have fallen over 4%.
Global chip giants reported strong earnings but faced investor skepticism. Taiwan Semiconductor Manufacturing Co. (TSMC) posted a 58% jump in first-quarter profit, marking its fourth straight record quarter, with CEO C.C. Wei citing "extremely robust" AI-related demand. Despite this, TSMC shares fell about 3%. Similarly, ASML reported strong results and raised guidance, yet its stock declined. This pattern reflects the high expectations burdening the sector, as seen when Nvidia faced a sell-off after blowout earnings last quarter.
In a major development, AI chip company Cerebras is set to file for an initial public offering (IPO) before Friday's market close, according to sources familiar with the matter. The company has pivoted from selling hardware to offering computing power as a cloud service. A key driver is its expanded partnership with OpenAI, now valued at over $20 billion through 2028, which includes warrants for Cerebras shares. OpenAI executive Sachin Katti stated the partnership adds "a dedicated low-latency inference solution" to their platform.
The competitive landscape is intensifying as startups secure significant funding. European companies like Euclyd and Optalysys are planning raises of at least $100 million each, while others such as Fractile and Arago seek nine-figure rounds. In 2026 alone, over $200 million has been invested in startups Axelera and Olix. These firms are focusing on AI inference technology, aiming to challenge Nvidia's dominance.
Geopolitical tensions continue to influence the sector, with the U.S. House of Representatives introducing the MATCH Act on April 2 to further restrict China's access to advanced chip equipment, including ASML's lithography machines.
