China’s AI Chip Boom Fuels Cambricon, Alibaba Stock Rallies (1)

Chip manufacturers and cloud stocks are among the major beneficiaries of China’s push for homegrown technology.

Shares such as AI chip designer Cambricon Technologies Corp. and production gear maker Naura Technology Group Co. have soared this quarter as traders bet the nation’s drive for self-reliance will supercharge sector growth. Their optimism also sent the SSE Science and Technology Innovation Board 50 Index, a gauge heavy on onshore chipmakers, surging by a record 28% last month.

The gains have been fueled by Beijing’s support for emerging tech and as large firms like Alibaba Group Holding Ltd. increasingly turn to domestic ...