ILUVATAR COREX (09903) rose over 6%, gaining 6.71% to HKD 4.74 by the time of writing, with a turnover of HKD 161 million.

According to data from Frost & Sullivan, China's AI chip market is projected to grow from RMB 142.5 billion in 2024 to RMB 13.4 trillion by 2029. Within this segment, the GPU market is expected to see the fastest growth, with its market share anticipated to increase from 69.9% in 2024 to 77.3% by 2029.

Huachuang Securities believes that driven by multiple factors including national policy support, a surge in computing power demand, the reshaping of global supply chains, and accelerated domestic control initiatives, the high-performance GPU industry is entering a period of rapid growth. Domestic manufacturers in China are poised to seize significant development opportunities under the broader trend of computing power localization.

A Haitong International research report noted that as a pioneer in China's dual-line GPU field, ILUVATAR COREX's DeepSpark ecosystem demonstrates core competitiveness. The current stock price represents a significant discount relative to its potential valuation. The report highlighted that the company's revenue doubled year-on-year to RMB 1.034 billion last year, with projected increases of 126% and 133% for this year and next, respectively, driven by higher average selling prices for TG Gen 3 and increased production of the ZK series. The company's inclusion in the Southbound Stock Connect program on June 8th is viewed as a short-term catalyst for re-rating. As a scarce Hong Kong-listed domestic GPU stock, the company's current share price implies a forward price-to-sales ratio of 20x for next year, which is below the average of approximately 56x for its mainland A-share peers.