MONTAGE TECH (06809) saw its shares rise more than 8% in late trading, reaching a record high of HK$188. At the time of writing, the stock was up 7.53% to HK$185.7, with a turnover of HK$529 million. A Citi research report noted that growing demand for CPU-based servers, coupled with potential catalysts from new developments in agentic AI applications, is expected to drive increased usage of DIMM memory modules. This trend is seen as beneficial for the company's memory interface business, providing upside potential and supporting profit growth for this year and next. Citi currently assigns MONTAGE TECH a "Buy" rating with a target price of HK$205, implying a forward price-to-earnings ratio of approximately 54 times for the second half of this year through the first half of next year. Earlier analysis from First Shanghai indicated that with the advent of the AI era, the rapid performance growth of computing chips is making interconnect capabilities an increasingly critical bottleneck in AI computing clusters. The company's interconnect chip business is poised for significant high-speed growth, driven by upgrades in memory interface technology from DDR4 to DDR5 and eventually DDR6, as well as advancements in PCIe from version 4.0 to 6.0 and even 7.0. Combined with the memory pooling capabilities introduced by the CXL standard, these developments are expected to substantially increase the value of related interface chips.