Memory Interface IC Supported by CPU Inferencing Workload

Goldman Sachs reiterates its Buy rating for Montage, significantly raising price targets due to expected strong demand for memory interface ICs fueled by AI server workloads and agentic AI. The firm forecasts a robust 38% Net Income CAGR through 2028.

Key Takeaways

• 1.Goldman Sachs maintains a Buy rating on Montage, raising the 12-month target price significantly to Rmb363 (A-share) and HK$510 (H-share).
• 2.The firm expects a 38% Net Income CAGR for the 2026-28E period, driven by demand for memory interface ICs and high-speed interconnection chips in AI servers.
• 3.Increasing adoption of agentic AI is shifting CPU workloads toward inferencing, which requires higher data transmission speeds and more RCD/MRCD/MDB components.

Table of Contents

• Agentic AI inferencing increases memory interface IC demand
• Continuous new product development
• Earnings revision
• Valuation
• Price target methodology and risks - Montage
• GS Forecast
• Disclosure Appendix

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