HK Stock Market Move | Montage Technology (06809) closes up more than 8% to hit a new high, Citigroup is optimistic about its profit growth in the next two years.

Montage Technology (06809) rose more than 8% in the afternoon, reaching a high of 188 Hong Kong dollars, setting a new record high for the company. As of the time of writing, it was up 7.53% at 185.7 Hong Kong dollars, with a trading volume of 5.29 billion Hong Kong dollars. On the news front, Citigroup's research report pointed out that the growth in server demand based on CPUs, as well as new developments in AI applications, may catalyze the use of more DIMM memory module, bringing upside potential to the company's memory interface business and driving profit growth in the next two years. Citigroup currently gives Montage Technology a "buy" rating with a target price of 205 Hong Kong dollars, corresponding to a forecasted P/E ratio of about 54 times for the second half of this year to the first half of next year. FIRST SHANGHAI previously pointed out that with the arrival of the AI era, the performance of AI chips is rapidly increasing, and interconnection capabilities are gradually becoming the bottleneck for AI computing clusters. The company's interconnect chip business will see a certain high-speed development, including upgrades in memory interface technology from DDR4 to DDR5 or even DDR6, as well as improvements in PCIe from 4.0 to 6.0 or even 7.0, combined with the memory pooling proposed by the CXL standard, will significantly increase the value of related interface chips.