AI Chips
All research in AI Chips — 15 reports.
Biren is a domestic high-end GPGPU designer that sells self-developed GPUs, systems, and software stacks as packaged solutions to intelligent computing centers and cloud customers. Revenue reached RMB 1.035 billion in 2025, up 207.2% year on year, but more than 94% was recognized in the second half, operating cash outflow was RMB 2.137 billion, and the price-to-sales ratio was about 98.7x. Research rating Watch: scarcity is real, but the current price already discounts several years of high-growth delivery, with an ideal buy zone of HKD 21–25.
A domestic general-purpose GPU designer, Iluvatar CoreX sells compute through training cards, inference cards, and AI solutions, making it a scarce Hong Kong-listed name not yet on the Entity List. In 2025, revenue reached RMB 1.034 billion, gross margin was 54.0%, adjusted loss narrowed to RMB 438.8 million, and the stock traded at roughly 110x price-to-sales. Rating Avoid: inference volume is real progress, but HKD 519 already discounts two to three years of execution, with an ideal buy range of HKD 190-255.
MetaX is a domestic full-function GPU designer whose core team came from AMD, with the XiYun C series contributing 94.31% of revenue. 2025 revenue reached 1.644 billion yuan, up 121.26%, while net loss attributable to shareholders was still 789 million yuan, operating cash flow was -1.260 billion yuan, the price-to-sales ratio was about 169x, and three lock-up expiries are due within the year. Research rating Avoid: the company is improving, but the share price has already discounted years of successful execution, with an ideal buy range of 170-220 yuan.
Cambricon is a Chinese AI chip design company whose cloud products now contribute almost all revenue and which achieved its first full-year profit in 2025. Revenue reached 6.497 billion yuan, up 453.21% year over year, but operating cash flow was a net outflow of 498 million yuan, the top five customers contributed 88.66% of sales, and trailing P/S was about 93.5x. Research rating Avoid: the earnings inflection has arrived, but the current price has nearly prepaid the next two rounds of execution, with an ideal buy range of 280–340 yuan.
Moore Threads is a domestic full-function GPU designer listed on the STAR Market in late 2025, with revenue already shifting toward AI compute clusters. 2025 revenue reached CNY 1.506 billion, up 243.37%, and 2026Q1 net profit attributable to shareholders turned positive, but recurring profit remained negative, operating cash flow showed a CNY 1.487 billion net outflow, and the stock trades at about 192.6x sales, above Cambricon. Research rating Watch: revenue is scaling, but cash flow and recurring profit have not yet validated the valuation, with an ideal buy range of CNY 166–194.
Hygon Information is a domestic high-end processor design company, with CPUs providing the cash flow from Xinchuang and localization and DCUs providing upside optionality. 2025 revenue reached 14.377 billion yuan, up 56.92%, but the annual report does not split CPU and DCU revenue, while the static P/E is about 264x, more expensive than NVIDIA. Research rating Hold: CPU provides the floor and DCU provides elasticity, but the valuation has already priced in substantial optimism, with an ideal buy zone of 160-176 yuan.
Huawei HiSilicon Ascend is Huawei's AI chip and full-stack computing product line, spanning chips, servers, supernodes, software stacks, cloud services, and industry solutions. Huawei generated RMB 880.9 billion in 2025 revenue, RMB 68.0 billion in net profit, and RMB 192.3 billion in R&D spending, while Ascend had 4 million developers and 9,800+ partners by year-end 2025, making it China's primary domestic-substitution option for AI computing infrastructure. Report Rating Avoid: a strategically important business, but not a verifiable, priced, and executable value-investing security for outside public-market investors today.
Lightelligence is a scarce listed global AI photonic-computing asset, with 18C shares trading roughly 2x above the IPO price within five weeks of listing. Revenue was only RMB 106 million in 2025, with large accounting losses but about RMB 270 million of adjusted operating losses and roughly five years of post-IPO cash runway. Rating Avoid: the company holds 88.3% of the narrow China independent scale-up optical interconnect segment, but Huawei has 98.4% of the overall market and Lightelligence only about 1.4%.
Great company, bad price. AI revenue is still accelerating (Q1 at 8.4 billion, Q2 guided to 10.7 billion) with an FCF margin near 42%, yet the current price of 481.57 dollars implies a TTM free-cash-flow yield of only about 1.3% (far below the 4.46% on the 10-year Treasury), already pricing in AI optimism that remains unverified ahead of Q2. Rating Avoid: a high-quality compounder whose price has front-run the very catalysts it still has to deliver, so we cut from Watch to Avoid.
Great company, bad price. NVIDIA has evolved from selling chips to selling an entire accelerated-computing platform, with formidable cash flow and an exceptionally strong ecosystem, yet the current share price near 220 dollars already sits at the upper edge of the optimistic scenario, with fair intrinsic value of 110 to 140 dollars and an insufficient margin of safety for conservative investors. Rating Watch: an outstanding business that is still getting stronger, but at today's price you are buying extreme quality rather than buying it cheap.
The world's leading advanced-logic foundry, holding roughly 70% of the pure-play foundry market, with FY2025 revenue of NT$3.81 trillion and a 59.9% gross margin. At a current Taiwan share price of NT$2,235 and a TTM P/E near 29.5x, the stock already trades above fair value and offers a thin margin of safety. Rating Watch: a world-class business, but the price no longer leaves a cushion.
AMD is a fabless chip designer whose data-center engine pushed 2025 revenue up to $34.6 billion and lifted its server CPU revenue share to 46%, all on a net-cash balance sheet. Yet its AI-platform moat remains weaker than NVIDIA's, and at roughly $414 the stock trades at about 136x earnings and over 100x P/FCF, far above a $60–190 intrinsic-value range with no margin of safety. Rating Watch: a strengthening business, but a price that prices in more than a decade of good news.
Broadcom runs a dual engine of high-barrier semiconductors plus VMware software, with FY2025 revenue of 63.89 billion and free cash flow of 26.9 billion dollars; AI semiconductors are powering ahead, yet at roughly 411 dollars the stock already trades near 84x trailing GAAP earnings and 69x TTM free cash flow, leaving no margin of safety. Rating Watch: a high-quality, cash-rich platform priced for near-flawless execution, with an ideal entry of 160 to 220 dollars.
Built on AI custom silicon, optical interconnect, and data-center networking, with the data center making up three quarters of FY2026 revenue and genuine AI infrastructure demand behind it; yet today's 104x P/FCF and a 0.96% FCF yield (far below the 4.59% 10-year Treasury) already prepay the optimistic case. Fair value sits at $60-90, and the margin of safety is thin. Rating Watch: a strengthening AI-infrastructure platform whose price has run ahead of its value.
Paying a high price for an exceptional business. NVIDIA is now a full-stack platform for AI infrastructure, and its multi-layered moat (the CUDA ecosystem, NVLink system integration, and developer mindshare) is still widening; but at the current ~$225 it trades at 46x PE with a 1.8% FCF yield, the fair buy range is $120 to $160, and the price already sits near the upper edge of the optimistic scenario. Rating Watch: an outstanding franchise priced for sustained perfection rather than a bargain with a thick margin of safety.