Shares of Cambricon (688256.SSE) plunged more than 13% in early trading on February 3 after a widely circulated social-media post claimed the company had held a small, private meeting and issued an annual revenue target of RMB20 billion — well below investor expectations of RMB30–50 billion. The post, a short “little essay” that spread rapidly online, prompted investor concern and heavy selling before the firm responded.
Cambricon moved quickly to quash the account. In a formal statement the company said it had not organised any small-group exchanges recently and had not issued any annual or quarterly revenue guidance. The company reiterated that research and development remain on track and operations are progressing steadily, and warned investors to rely only on officially disclosed information. It also said it reserves the right to pursue legal action against anyone who fabricates or circulates false information.
The episode underscores the vulnerability of China’s technology stocks to rapid swings driven by social-media rumours. Cambricon, an emblematic Shanghai STAR Market listed firm active in AI processor design, has been subject to elevated market attention as investors price in demand for generative AI and cloud-data centre chips. Expectations in recent months have placed the company’s potential revenue well into the tens of billions of yuan, making any purported guidance that falls short particularly market-sensitive.
China’s equity markets have seen a string of similar incidents in which “small essays,” anonymous posts, or whisper campaigns have moved prices before companies or regulators intervene. Under China’s market-disclosure regime, listed companies are required to make material announcements publicly and promptly; enforcement and investor-protection mechanisms have improved but remain stressed when rumours propagate on closed messaging apps and social platforms.
For Cambricon, the immediate task is reputational damage control: calming investors, reasserting transparency, and, if necessary, using legal deterrence to stem further misinformation. For the sector, the episode is a reminder that sentiment — tied to hype around AI — can detach from fundamentals and regulatory signalling, creating episodic volatility that can affect fundraising, partnership negotiations and hiring.
Longer-term implications hinge on how aggressively regulators and companies respond. If Cambricon pursues and publicises legal action against rumour-mongers, it could deter future misinformation and reinforce the primacy of formal disclosures. Conversely, if similar episodes continue unchecked, investor confidence in smaller, high-growth Chinese tech stocks could be weakened, raising the premium for risk and complicating valuations in the AI chips market.