Shares of MONTAGE TECH (HKEX: 06809) surged more than 10%. At the time of writing, the stock was up 10.78% to HK$419.2, with a turnover of HK$17.09 billion.

Industry Outlook and Catalysts

According to a forecast, the development of AI is gradually shifting from training to inference, which continues to drive demand for semiconductor memory. As a short-term supply gap in the industry cannot be filled, memory prices are rising. It is estimated that the global semiconductor memory market will grow to US$1.28 trillion by 2027, representing a 44% year-on-year increase.

A securities firm noted that overseas cloud service providers are continuously increasing investment in AI infrastructure, persistently boosting enterprise-level storage demand and driving the storage industry's upward momentum. Mainstream storage products are experiencing simultaneous growth in volume and price. Given the current high AI sector momentum, the strength and duration of this storage cycle are expected to surpass the previous one.

Company-Specific Growth Drivers

Another securities firm views MONTAGE TECH as a leader in the memory interface chip market, transitioning from a memory interconnect leader to a platform-type interconnect chip company. In the AI era, the company's long-term focus on critical high-speed interconnect chips between computing power and storage has resulted in a rich product portfolio and a leading position in the global market.

In its core traditional memory interconnect business, the iteration to DDR5 and MRDIMM is driving both volume and price increases. In the first quarter of 2026, the company achieved significant growth in both revenue and net profit. The company's PCIe Retimer products have entered a volume shipment stage. The company is extending its expertise along a similar path into the higher-value PCIe Switch domain, which is expected to open up new growth opportunities.