(Yicai) Dec. 20 -- Net profits at 42 listed Chinese chipmakers at least doubled in the first three quarters of the year, as the nation’s semiconductor market followed the global market recovery.

Goodix Technology stood out with profit growth of 20.4 times in the nine months ended Sept. 30, followed by Will Semiconductor at 16.6-fold. Earnings at both were significantly better than in the previous two years.

The boom in artificial intelligence has been the main highlight for the sector, and despite a slowdown in demand for high-end chips such as AI processors, there has been notable market growth overall.

The semiconductor index was lackluster for most of the period, but at the end of September the sector rallied by the most in two years as the potential demand for AI caught the attention of market funds.

The Wind Semiconductor Index of Chinese stocks posted a jump of 18.1 percent yesterday from a year ago to 3709.29, while the Philadelphia Semiconductor Index of US stocks soared 19 percent.

The combined market value of 197 semiconductor stocks jumped over 26 percent this year to CNY4.8 trillion (USD657.7 billion), according to Wind data. The share price of eight of these at least doubled.

Smart chip startup Cambricon logged the biggest share price run-up at 371 percent. Forty-five of these stocks surged by more than 30 percent, while 70 added more than 20 percent.

The high valuations have triggered concern among investors, however. Cambricon's revenue was just CNY710 million (USD97.2 million) last year, while the Beijing-based company's market value has soared to CNY260 billion (USD35.6 billion).

CMB International has a positive outlook for the long-term growth of AI and recommends seizing opportunities in multiple rounds of investment, the financial services firm said in a recent report. It is also optimistic about the prospects for Chinese chipmakers taking domestic market share due to the nation’s drive for self-sufficiency.

Editor: Kim Taylor