Shares of ILUVATAR COREX (09903) climbed more than 10% during the morning session. At the time of writing, the stock was up 9.82%, trading at HK$116.70, with turnover reaching HK$491 million.

The index adjustment for Hang Seng Tech Index constituents took effect on September 7th. ILUVATAR COREX became the first and currently only GPU-focused stock to be included in the index. This inclusion represents significant capital market recognition of the company's technological innovation, R&D investment, revenue growth, market capitalization, and liquidity. It is expected to broaden the company's investor base, attract wider market attention, and enhance trading liquidity in its shares.

Macquarie recently published a research report maintaining an "Outperform" rating on ILUVATAR COREX (09903) with a target price of HK$1,060. The firm cited the company's penetration into Chinese cloud service provider (CSP) customers and the anticipated gradual contribution from its next-generation general-purpose graphics processing unit (GPGPU) chips as key reasons.

Management at ILUVATAR COREX recently met with investors. The bank noted that the gross margins for the core "Tianai" training chip and "Zhicai" inference chip remained stable at 64.5% and 35.6%, respectively, during the first half of this year. R&D expenditure increased 24% year-over-year to RMB 559 million in the first half, accounting for 59% of total revenue. Inventory grew 1.8 times from six months ago to RMB 2 billion, with prepayments estimated to exceed RMB 900 million, a 60% increase compared to six months prior.

The firm believes that following the launch of the new "Tianai-300" training GPGPU chip in July, mass production could begin as early as the fourth quarter of this year. With stronger computing power, die-to-die interconnect, and higher average selling prices, the chip is expected to contribute meaningfully next year. Management also plans to launch a new-generation super-node solution in the fourth quarter, which should yield healthy profit margins. The bank expresses confidence in the company's medium-term prospects with CSPs and large language model clients.