Shares in China's leading graphics-chip makers surged on Thursday, 12 November, as turmoil at Nvidia raised hopes that domestic suppliers could win a bigger share of the world's largest chip market.

Cambricon Technology climbed 9.8%, MetaX rose 7.9%, Moore Threads gained 6.9% and Shanghai Biren Technology advanced 6.7% in the session, according to Dow Jones Newswires. Reuters reported that Moore Threads, MetaX and Cambricon all jumped nearly 10%.

Why investors turned to Chinese chipmakers

The rally followed a sharp after-hours fall in Nvidia, whose shares dropped more than 8% on Wednesday evening after The Wall Street Journal reported that its board was preparing to oust chief executive Jensen Huang. Nasdaq 100 futures fell nearly 1% in Asia on the news.

Investors are betting that further restrictions on Nvidia's business in China, combined with Beijing's push for technological self-reliance, could create more room for homegrown suppliers. Demand for locally made semiconductors has already been rising as Chinese buyers look for alternatives to US chips.

Gains are about expectations, not sales yet

The share moves reflect what investors expect might happen, rather than any confirmed gain in market share. None of the Chinese companies has yet shown it can match Nvidia's most advanced chips, and the gains could reverse quickly if the leadership uncertainty at Nvidia is resolved.

Even so, the session underlined how far the AI trade has spread beyond a single company. With Nvidia under pressure, money is rotating towards the suppliers that could benefit if its grip on China's data-centre market loosens. Reuters and Morningstar reported the moves.