Montage Technology (HKEX: 06809) shares surged more than 7% in trading, highlighting strong investor interest in the AI and memory sector.

The company recently released an investor relations activity report, detailing its performance for the first half of the year. It benefited significantly from the AI industry trend, with robust demand leading to higher DDR5 penetration and ongoing generational upgrades. Shipments of its DDR5 RCD chips increased notably, with the proportion of third and fourth-generation RCD chips seeing further growth.

Revenue from new interconnect chip products, including MRCD/MDB, PCIe Retimer, CKD, and CXL MXC chips, also rose substantially. The company plans to complete engineering R&D for its third-generation MRCD/MDB chips this year, with industry expectations that MRDIMM will begin scaling over the next two to three years before entering a phase of increasing market penetration.

A recent research report from Citi noted that Montage Technology's H-share trades at a premium to its A-shares, reflecting strong favor among international investors for this rare AI-themed stock. Following the company's release of its H1 2026 performance forecast and share buyback plan, the bank engaged with management.

Citi's analysis suggests that, despite potential short-term stock price volatility, the company's fundamental business strength remains robust. Benefiting from an easing of substrate supply constraints, the second quarter of this year saw both revenue and profit reach record highs, with contributions from new products (Gen 3/4 RCD, MRCD/MDB, PCIe retimer, CXL) increasing further.