Montage Tech (06809) surged more than 11% at the market open, with shares last trading up 11.73% at HK$320.00, on turnover of HK$101 million.

On the news front, Meta's AI agent Muse, released earlier this month, quickly climbed to the top of Apple's App Store free app charts, rekindling market enthusiasm for CPU manufacturers and driving sharp gains in overnight trading for chip stocks such as Intel and Arm.

Analysts point out that the growing adoption of AI agents will increase inference and infrastructure workloads, which should boost demand for server CPUs. Notably, Intel CEO Lip-Bu Tan previously stated that CPU demand is growing rapidly, leading to a tight supply situation, and with the evolution of AI applications, the shortage could persist.

As CPU usage expands in the Agentic AI era, demand for memory interconnect chips is expected to rise. Montage Tech boasts a diverse interconnect chip product portfolio and held a 36.8% market share in 2024. A CLSA research report indicates that as AI shifts from model training to inference, particularly with the development of AI agents, demand for server CPUs is on a sustained uptrend. The firm believes Montage Tech is a primary beneficiary of robust CPU demand.