Montage Tech Surges Over 17% at Open as Institutions Highlight Rising Server CPU Demand

Deep News
Sep 22

Montage Tech (06809) opened more than 17% higher in early trading, with shares last up 15.50% at HK$330.80, recording a turnover of HK$800 million. The surge follows Meta's AI agent 'Muse,' released earlier this month, which quickly topped the free app charts on the Apple App Store, rekindling market enthusiasm for CPU makers and driving sharp gains in chip stocks such as Intel and Arm overnight.

Analysts point out that the widespread adoption of AI agents will boost inference and infrastructure workloads, thereby benefiting server CPU demand. Notably, Intel CEO Lip-Bu Tan previously stated that CPU demand is growing rapidly, leading to a supply-demand tightness, and that the shortage could persist as AI applications continue to evolve.

It is understood that as CPU usage grows in the Agentic AI era, demand for memory interconnect chips is expected to rise. Montage Tech boasts a diverse interconnect chip product portfolio and held a 36.8% market share in 2024. A research report from CLSA indicates that as AI shifts from model training to inference, particularly with the development of AI agents, server CPU demand is consistently rising. The firm believes Montage Tech is a primary beneficiary of robust CPU demand.

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