Shares of ILUVATAR COREX Surge Over 13% on Reports of ByteDance Chip Purchase Talks

Stock News06-22

Shares of ILUVATAR COREX (09903) surged more than 13% in the afternoon session, reaching a new record high of HK$717.5 and pushing the company's total market capitalization above HK$180 billion.

As of the latest update, the stock was up 11.83% to HK$704.5, with a trading turnover of HK$1.429 billion.

Key Market Drivers

The rally follows media reports indicating that ByteDance is in discussions with the domestic GPU manufacturer to purchase AI chips, with an expected delivery of at least 50,000 units this year. These chips are reportedly intended to support the inference operations of ByteDance's AI chatbot, Doubao.

Additional reports suggest that Alibaba is also in contact with ILUVATAR COREX and is likely to become its next major client.

Analyst Perspective

Analysts have noted that the company possesses a strong foundation among industry clients, with potential for breakthroughs in securing business from leading cloud computing providers. Driven by the wave of domestic substitution, the company is expected to maintain rapid growth.

Growth in inference chips is projected to outpace that of training chips. Revenue from the GPGPU business is forecast to reach RMB 2.425 billion, RMB 4.548 billion, and RMB 7.258 billion for the years 2026 through 2028, respectively, corresponding to growth rates of 162.8%, 87.6%, and 59.6%.

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