INNOSCIENCE (02577) shares climbed more than 3% in early trading, currently up 2.11% at HKD 46.50, with turnover reaching HKD 101 million. A research report from Daiwa highlighted that as AI data center rack power density increases from around 150kW today to 1MW starting next year, the existing 400V AC distribution architecture will hit its physical limits. The broker predicts the industry will shift to 800V DC architecture from the second half of next year, which will boost demand for gallium nitride (GaN) power devices.

Daiwa forecasts that 800V AI data centers will generate USD 540 million to USD 4.5 billion in GaN power device demand between 2027 and 2030. As the world's largest GaN power device supplier with a market share of approximately 30% in 2025, INNOSCIENCE (02577) holds a competitive product advantage. The broker projects the company's revenue will achieve a compound annual growth rate (CAGR) of 58% from 2025 to 2030, driven by the 800V AI data center buildout. Net profit margin is expected to expand from negative 24% in 2026 to between 17% and 24% in 2029-2030, while net profit is forecast to grow from RMB 132 million in 2027 to RMB 2.826 billion in 2030, representing a CAGR of 178%.