ILUVATAR COREX (09903) saw its share price climb nearly 10% during the afternoon trading session. At the time of writing, the stock was up 8.09% to HK$398.00, with turnover reaching HK$582 million.

According to the company's interim results, the surge was driven by explosive growth in its Zhikai chip series, which benefited from a concentrated surge in demand for cloud-based AI inference computing power. Revenue from the Zhikai series hit approximately HK$654 million in the first half of the year, a remarkable 651.8% year-on-year increase. Gross profit from this segment reached around HK$233 million, with a gross margin of 35.6%, establishing it as the core growth engine for the company's overall revenue.

The Tiange series, targeting high-end training scenarios, continued its steady growth trajectory, generating revenue of roughly HK$262 million in the first half, up 38% year-on-year.

In a research note, Shenwan Hongyuan highlighted that the company has developed three product lines—Tiange, Zhikai, and Tongyang—based on GPGPU architecture, covering AI training, inference, and edge computing scenarios across the board. The firm noted the company's competitive advantage lies in its focus on total cost of ownership (TCO) and computing efficiency tailored to specific business environments. Consequently, the broker maintained its earnings forecast, projecting net profits attributable to shareholders of HK$103 million, HK$1.696 billion, and HK$3.264 billion for 2026, 2027, and 2028 respectively, while reiterating a "Buy" rating.