Chip Maker Montage's Shares Surge as AI Infrastructure Buildout Continues

By Sherry Qin

Shares of Chinese AI chip maker Montage Technology soared in Shanghai and Hong Kong amid buoyant sentiment as the global AI infrastructure buildout gathers pace.

The advances have come as robust earnings and guidance from U.S. chip makers have sent global semiconductor stocks on a sharply upward trajectory in recent weeks. The latest blistering rally in chip stocks lifted U.S. shares to new highs on Friday, with the tech-heavy Nasdaq Composite rising 1.7% for its 11th record close of 2026. Memory chip makers have been the top beneficiaries amid the continuing supply crunch.

The company's Hong Kong-listed stock has now more than quadrupled from its IPO price in three months. Shares were recently 17% higher at 440 Hong Kong dollars, equivalent to US$56.20, after rising as much as 24% earlier.

In Shanghai, its shares surged by the 20% daily limit to 252.32 yuan, or US$37.10, before also paring gains to about 17%.

Shanghai-based Montage, founded in 2004, specializes in memory interface chips that help AI computer works move data faster between processors and memory. That means its growth outlook is closely tied to AI-fueled computing demand.

Elsewhere in Asia on Monday, shares of South Korea's SK Hynix, a key memory supplier to Nvidia, rallied more than 15% to a new intraday record.

Citi views Montage as "a rare quality AI play" among Chinese semiconductor names, as it is a direct beneficiary of global AI capital spending with a global customer base.

With AI agent and inference workloads now demanding more central processing units in addition to graphics processing units, more high-speed, high-density memory interconnect technologies from Montage will be needed, according to Citi analysts in a recent note.

Montage's net profit jumped 61% in the first quarter as shipments of its flagship DDR5 RCD chips--which act as a signal traffic controller for server memory--rose sharply.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 11, 2026 02:48 ET (06:48 GMT)