VeriSilicon is entering a new phase of accelerated growth. Goldman Sachs published its latest research report on September 12, raising VeriSilicon's 12-month target price from 193 RMB to 220 RMB while maintaining a "buy" rating, reflecting the company's continued strong growth momentum driven by AI orders.

The core driver of this optimistic outlook stems from the company's robust order growth in AI computing. VeriSilicon recorded an 86% year-over-year surge in new orders from early July to mid-September, pushing the company's total order backlog to 3 billion RMB, with 64% coming from the AI computing sector, establishing a solid foundation for future performance.

More notably, on the evening of September 11, VeriSilicon announced plans to acquire a 97.0070% stake in Nuclei System Technology, a leading domestic RISC-V IP supplier, through a combination of share issuance and cash payment. Upon completion, Nuclei will become a wholly-owned subsidiary. This acquisition aims to fill VeriSilicon's important gap in the CPU IP field, build a more comprehensive full-stack heterogeneous computing IP platform, and further enhance the design flexibility and market competitiveness of its AI ASIC business.

Goldman Sachs valued VeriSilicon using a 2029 46x P/E discount method, raising the target price to 220 RMB, representing nearly 20% upside from the current stock price. Goldman Sachs also raised VeriSilicon's net profit forecasts for 2027 to 2030, with increases of up to 7%. However, due to increased R&D investment, the 2025 profit expectation was revised down from a previous net profit of 139 million RMB to a net loss of 18 million RMB. Nevertheless, the company's long-term expansion core remains favored, with compound profit growth rates potentially maintaining high levels from 2026-2030.

**AI Orders Surge, Order Backlog Provides Strong Support**

VeriSilicon's recent significant order growth demonstrates that AI demand is becoming the company's most important driving force.

According to company announcements, new orders in Q3 2025 grew 86% year-over-year, with the order backlog reaching 3 billion RMB, 64% of which comes from AI computing. Goldman Sachs believes this will provide strong support for VeriSilicon's continued performance growth, particularly reflected in the accelerated growth of custom chip design and IP licensing business in areas such as smart automotive and AI terminals.

Currently, VeriSilicon is actively expanding AI cloud and edge computing ASIC projects, with order structure tilting toward high-growth areas, improving the sustainability and counter-cyclical nature of the company's revenue.

**Nuclei Acquisition Completes Product Portfolio, Expands Downstream Intelligence Scenarios**

To further strengthen its comprehensive technical capabilities, VeriSilicon announced a strategic acquisition plan in September, targeting domestic RISC-V CPU IP supplier Nuclei System Technology. The acquisition will be conducted through share issuance and cash payment, with cash payment not exceeding 30% of the company's total share capital.

As a pioneer and leading enterprise in China's RISC-V IP sector, Nuclei's products are widely used in AI, automotive electronics, IoT and other fields, with RISC-V IP licensing services achieving gross margins exceeding 90%. This acquisition will strengthen VeriSilicon's layout in the RISC-V field and is expected to accelerate the industrialization process of RISC-V technology through technological synergies.

The issuance price of this transaction reflects market recognition of VeriSilicon's long-term value. As a leading AI ASIC company, VeriSilicon's order backlog has reached new highs for seven consecutive quarters, with AI computing-related orders accounting for over 60%, demonstrating the company's strong growth momentum benefiting from computing power enhancement.

Goldman Sachs believes this acquisition will fill VeriSilicon's gap in CPU IP, making its IP portfolio (already covering GPU/NPU/ISP, etc.) more complete. This will significantly enhance VeriSilicon's ability to empower smart automotive and AI devices (such as AI toys, AI tablets, etc.), further consolidating its industry position as a one-stop chip solution provider, effectively driving customer spending growth.

**Profit Forecast Downward Revision Creates Short-term Pressure, Long-term Growth Momentum Stronger**

From the profit forecast adjustment perspective, Goldman Sachs revised the 2025 net profit forecast from 139 million RMB to a loss of 18 million RMB, mainly due to R&D expense ratio rising to 47%. However, as revenue scale expands and efficiency improves, net profit forecasts for 2026 to 2030 are expected to increase by 2% to 7% respectively.

Regarding revenue forecasts, 2027-2030 estimates were slightly raised each year, mainly due to improved expectations for AI-related chip design services and semiconductor IP revenue. Gross margins are also expected to improve during the same period, with 2029-2030 gross margins rising 1-2 percentage points, and operating profit margins and net profit margins expected to advance to 28%-30% and 26%-29% levels respectively, indicating systematic improvement in the company's profitability quality.

Goldman Sachs valued VeriSilicon using a 2029 46x P/E discount method, raising the target price to 220 RMB, representing nearly 20% upside from the current stock price. This upgrade, based on peer 2027 earnings growth rates and 2026 valuation comparisons, reflects the market's optimistic judgment on the AI chip and semiconductor IP sector's prosperity. The 2026 price-to-sales ratio valuation is 23x, positioned at the high end of the company's historical range.