Chinese optical chipmaker Yuanjie Semiconductor Technology reported an elevenfold surge in first-quarter profits as domestic firms capitalise on soaring demand for computing power amid the artificial intelligence boom and the country’s tech self-sufficiency drive.

Net profit in the three months ended March 31 jumped 1,153 per cent year on year to 179 million yuan (US$26.2 million), while revenue grew 321 per cent to 355 million yuan, the Shanghai-listed company said in a stock-exchange filing on Monday.

Founded in 2013 and based in northwest China’s Shaanxi province, the company manufactures laser chips used in applications including AI data centres.

Yuanjie attributed its strong quarterly results to a revenue increase for its continuous-wave laser products and a general rise in demand. It added that it also benefited because data centre products commanded higher gross margins.

Listed in Shanghai in 2022, Yuanjie was the second company on China’s tech-focused Star Market to see its share price surpass the 1,000 yuan threshold, after AI graphics processing unit maker Cambricon Technologies.

Yuanjie’s share price also increased elevenfold over the past year, closing at 1,418 yuan on Monday and topping baijiu maker Kweichow Moutai as China’s costliest stock. Yuanjie’s market capitalisation stood at 121.8 billion yuan, paling in comparison with Cambricon’s 572.1 billion yuan.