Bocom International has initiated research coverage on AXERA (00600), assigning a "Buy" investment rating and setting a target price of HK$36.

The bank views AXERA as a leader in the artificial intelligence (AI) inference system-on-chip (SoC) industry. The company's end-to-end and edge AI products are seen to have broad potential for deployment in application scenarios such as visual AI inference and intelligent driving.

Bocom International forecasts that AXERA's revenue will grow by 52%, 98%, and 117% in 2026, 2027, and 2028, respectively. It also projects the company's overall gross profit margin to improve from 21.6% in 2025 to 34.2%, 38.9%, and 42.7% over the same subsequent three-year period.

Additionally, the firm anticipates AXERA will achieve positive EBITDA in 2027 and turn to a net profit in 2028.