Strong demand for AI: Montage Technology expects net profit to grow by 52.29%-66.46% in 2025, with a significant increase in interconnect chip shipments | Financial Report News

Montage Technology has disclosed a performance forecast, announcing that thanks to strong demand in the artificial intelligence industry, the chip design company expects a substantial increase in net profit for the 2025 fiscal year.

On January 16, Montage Technology announced that it expects to achieve net profit attributable to shareholders of the parent company of 2.15 billion to 2.35 billion yuan in 2025, representing a year-on-year increase of 52.29% to 66.46%. Net profit after deducting non-recurring gains and losses is expected to reach 1.92 billion to 2.12 billion yuan, a year-on-year increase of 53.81% to 69.83%.

The company stated that the sharp growth in performance is mainly due to robust industry demand driven by AI trends, resulting in a significant increase in shipments of interconnect chips. Montage Technology focuses on designing chips that accelerate data flow in data centers and AI accelerators.

According to a previous WallstreetCN article, Montage Technology is advancing its Hong Kong IPO process, planning to raise approximately $900 million, with Alibaba, J.P. Morgan Asset Management, and UBS Asset Management already secured as cornerstone investors. The company currently has a valuation of about $22 billion, and its A-share stock price recorded a 73% increase in 2025.

Strong AI Demand, Net Profit Expected to Grow Over 50% in 2025

Montage Technology attributes its performance growth to strong industry demand driven by AI trends. The company’s interconnect chip shipments have increased significantly, becoming the main driving force behind the remarkable year-on-year growth in operating results for 2025.

According to the announcement, the company’s net profit attributable to shareholders of the parent company for 2024 was 1.412 billion yuan, with net profit after deductions at 1.248 billion yuan, and earnings per share of 1.25 yuan. The median expected net profit for 2025 is 2.25 billion yuan, equivalent to an increase of about 59% year-on-year, while the median net profit after deductions is 2.02 billion yuan, also close to a 62% increase.

Founded in 2004, Montage Technology’s main business is designing data interconnect chips for data centers and AI accelerators. As global AI infrastructure construction accelerates, data centers’ demand for high-performance interconnect chips continues to grow.

Global Investment Institutions Bet on Hong Kong Listing

The lineup of cornerstone investors for Montage Technology’s Hong Kong IPO shows institutional confidence in its growth prospects. According to reports, Alibaba and J.P. Morgan Asset Management will participate as cornerstone investors in this offering, committing to hold shares for a set period in exchange for guaranteed allocation.

Other cornerstone investors include Aberdeen Group from Scotland, Mirae Asset Securities from South Korea, and UBS Asset Management.

According to previous analyst forecasts, as demand for AI infrastructure construction continues to be released, the company’s profit in 2025 may rise to 2.3 billion yuan, and further increase to 3.3 billion yuan in 2026. This expected growth trajectory aligns with the company’s own 2025 performance forecast.

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