Recently, I looked at the financial reports of several leading domestic GPU design companies and found an interesting phenomenon.

Let's start with the data. Muxi Co., Ltd. has a market value of 332 billion yuan, with revenue of 1.24 billion yuan in the first three quarters of this year, and an estimated full-year revenue of around 1.7 billion yuan. Mooresoft just went public, with a market value of 336 billion yuan, revenue of 780 million yuan from January to September, and an estimated annual revenue of 1.1 billion yuan. The market value to annual revenue ratios for these two companies are 195 and 305 respectively, which means they are about 2 to 3 hundred times.

Now, look at Cambrian, known as the "Nvidia of China." Its market value is 554.7 billion yuan, with an estimated full-year revenue exceeding 6 billion yuan. The market value to revenue ratio is 92. It appears much lower than the previous two, but how does it compare to international giants?

Nvidia's market value has reached $4.3 trillion, with a full fiscal year revenue exceeding $200 billion. Based on this figure, the market value to revenue ratio is 21.5. AMD is even lower, under 20.

At first glance, the stock prices and market values of the three domestic companies do seem to have bubbles, and quite sizable ones. But there's a key point that cannot be ignored — for tech stocks that haven't yet entered a mature phase, traditional valuation methods shouldn't be used. Instead, we need to consider the premium for future market potential.

Currently, GPUs are mainly used for AI chips, which are core devices for artificial intelligence development and the crown jewel of the semiconductor industry. Coupled with our strong demand for domestic substitution, these leading companies are very likely to reach revenue scales of hundreds of billions of yuan in the future. Using this projected revenue to calculate the market value ratio, it would be roughly between twenty and forty, making the gap with Nvidia less significant.

In other words, the market has already priced in the entire industry's and companies' growth expectations. From this, two conclusions can be drawn:

First, the current market value is not considered a bubble, at least not an overvaluation, because the companies' future revenues are very likely to reach the expected scale.

Second, if there are uncertainties during development — such as the US further restricting technology exports to China, or domestic foundries lacking capacity — stock prices will face significant adjustments. This is a real risk.

Now, should you hold or increase your positions in domestic GPU listed companies? Frankly, it's a matter of confidence. Do you have confidence in Chinese technology, high-end chips, and the artificial intelligence industry? The most important thing in investing is rationality—making decisions based on your genuine judgment. After all, you're investing your own hard-earned money.