CMB International sharply raised its price target on Innoscience Technology (02577.HK) by 53.1 percent, citing a significant operational turnaround and deepening ties with top artificial intelligence clients like Nvidia and Google.
The bank lifted its target on the gallium nitride (GaN) chipmaker to 75 HKD from 49 HKD while maintaining a "Buy" rating, according to a research report released April 2. The move comes after Innoscience posted fiscal 2025 results that marked its first major operating inflection point.
For the fiscal year, Innoscience's revenue climbed 46.4 percent year-over-year to 1.2 billion RMB. The company's gross margin turned positive to 7.3 percent, and its adjusted EBITDA also became positive for the first time. The improved profitability was driven by expanded wafer capacity, which reached 20,000 per month, alongside better production yields and higher utilization rates.
The upgrade reflects Innoscience's commercial progress in high-growth sectors. The company is expanding its collaboration with Nvidia and Google on 800V DC power architecture for AI data centers. It also made initial inroads into the humanoid robotics market with a 100V integrated GaN driver and advanced its automotive business from mass shipments of onboard chargers to the initial validation stage for main drive inverters.
The positive analyst action underscores Innoscience's strengthening position as a key GaN supplier for demanding applications in artificial intelligence and next-generation vehicles. Investors will watch for further details on the Nvidia and Google partnerships in the company's upcoming investor calls.
This article is for informational purposes only and does not constitute investment advice.
