As Artificial Intelligence Develops, Demand for Memory Chips Grows

With the advancement of artificial intelligence, demand for memory chips is growing rapidly. Chinese company Montage Technology is particularly benefiting from this trend. Bernstein analysts consider it one of the most interesting investment opportunities in the semiconductor sector.

The company manufactures components required for AI servers, which is why data center expansion directly reflects on its sales. Analysts expect Montage's profits to grow significantly in 2027 and 2028. The main reasons for this are the launch of new-generation products and rapid expansion in the data storage direction. According to Bernstein's assessment, annual growth in this business will average 76.5% from 2025 to 2028.

Montage Technology has one more advantage. Unlike many other Chinese technology companies, it is not currently subject to direct export restrictions. Because of this, geopolitical risk associated with the company is relatively low, which makes its shares more attractive to foreign investors.

Source: Investing.com