Montage Technology's stock surged 5.02% during intraday trading on Tuesday, driven by the company's robust first-quarter financial results.

The Chinese chip designer reported a 61% year-over-year increase in attributable profit for Q1 2026, reaching 847.4 million yuan. Revenue also showed strong growth, rising 20% to 1.46 billion yuan. The company attributed its performance to robust AI-driven demand and significant growth in shipments of its DDR5 RCD chips and new interconnect products.

Despite a revenue figure that fell short of some market expectations, investors responded positively to the substantial bottom-line growth and improved gross margin of 69.8%, which increased by 9.3 percentage points year-over-year. The strong earnings report appears to have outweighed broader semiconductor sector concerns, fueling the stock's upward movement.