Montage Technology, a specialist in server and data center connectivity, launched its initial public offering (IPO) on the Hong Kong Stock Exchange this week, achieving a remarkable 64% increase on its first day of trading. Following a successful $902 million offering, Montage priced its shares at HK$106.89 ($13.67), the upper limit of its proposed range, and sold 65.9 million shares. The stock closed its debut session at HK$175, marking one of the strongest first-day performances among Hong Kong listings in the past five years, as reported by Bloomberg.
The company’s listing highlights the ongoing investor enthusiasm for Chinese semiconductor firms associated with the growing demand for artificial intelligence (AI) and data centers. Montage’s shares, previously listed in Shanghai, had closed at 170.90 yuan ($15.61) the day before its Hong Kong offering. Over the past year, those shares have more than doubled, giving the firm an estimated valuation of $29 billion. Projections indicate net income for 2025 could range from 2.15 billion yuan ($311 million) to 2.35 billion yuan ($340 million), with analysts expecting earnings to reach approximately 3.3 billion yuan ($477 million) by 2026 as demand for AI and data center infrastructure continues to rise.
Montage manufactures a diverse array of products essential for server and data center connectivity, including DDR5 memory PMICs, PCIe retimers, and CXL controllers. Its flagship product, the Jintide platform, enhances Intel Xeon CPUs by incorporating Chinese encryption and hardware root of trust support, alongside a proprietary I/O hub, thus bolstering its market position. According to Frost & Sullivan, Montage held more than one-third of global revenue share in the memory interconnect chip segment in 2024, positioning it as a significant player in China’s pursuit of semiconductor self-sufficiency.
The success of Montage’s IPO is part of a broader trend in which other Chinese technology firms are also attracting substantial capital. Companies like Biren Technology, which saw a 76% gain on debut, and GigaDevice Semiconductor, which has risen 93% since January, illustrate the burgeoning investor interest in the sector. Since late 2024 through early 2026, numerous IPOs among Chinese AI and semiconductor firms have emerged, indicating a robust appetite for investments in this space.
Biren and Iluvatar CoreX are notable for producing AI accelerators, operating in a market that is increasingly insulated from competition due to the Chinese government’s restrictions on imports of AI GPUs from AMD and Nvidia. Meanwhile, startups such as Minimax and Zhipu AI are capitalizing on the domestic demand for generative AI technologies, having found themselves in a favorable position without significant foreign competition.
Investor confidence in these companies is buoyed by domestic policies aimed at fortifying China’s AI ecosystem. In contrast, the success of GigaDevice and OmniVision stems from their established market positions. GigaDevice produces essential analog products and microcontrollers that feed into the broader microelectronics supply chain, while OmniVision focuses on CMOS image sensors critical for automotive and industrial applications, as well as AI-enabled vision systems.
Unlike many emerging AI startups, OmniVision benefits from established revenue streams and diverse end markets, reducing the risks associated with AI-centric investments. This strong foundation appeals to investors eager to engage with companies involved in the AI sector without exposing themselves to the volatility typical of early-stage startups.
The strong performance of Montage Technology’s IPO reflects a vibrant interest in Chinese semiconductor firms linked to AI and data center expansion. As demand for the infrastructure supporting AI continues to grow, more companies in both the AI sector and adjacent markets are likely to pursue successful IPOs, tapping into the millions of dollars available in investment capital, further energizing China’s technology landscape.
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