International investment bank Bank of America Securities has recently initiated coverage on ILUVATAR COREX (Stock Code: 09903), assigning the stock a price target of HK$1,013.

The report highlights that ILUVATAR COREX is a leading domestic manufacturer of general-purpose computing GPUs (GPGPUs), with two primary product lines: TianGai and ZhiKai. The institution's positive outlook on the company's development is based on three core rationales. Firstly, the company is well-positioned to benefit from the rapid expansion of the domestic AI accelerator chip market, driven by the trend of import substitution. Secondly, with the launch of new products and the continuous development of large end-customers, the company's market share is expected to steadily increase. Thirdly, its diversified supply chain strategy is anticipated to support sustained revenue growth.

Domestic demand for AI computing power continues to expand, with computing power needs for inference scenarios growing rapidly. This trend, combined with import restrictions on high-end GPUs from overseas and supportive domestic semiconductor policies, is solidifying localization as a long-term structural trend. The institution forecasts that the size of China's AI accelerator chip market will grow from $32 billion in 2025 to approximately $90 billion by 2028, representing a compound annual growth rate of 41%. ILUVATAR COREX's product portfolio, which covers both training and inference scenarios, positions it to fully capture the opportunities presented by this industry growth.