Key Takeaways:
- BofA initiated Tianshu Zhixin with a HK$1,013 target price
- China's AI accelerator chip market to reach US$90 billion by 2028
- Bank cites domestic substitution, product expansion, and supply chain strength
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BofA initiates Tianshu Zhixin at HK$1,013 on AI chip demand boom
Bank of America initiated coverage on Tianshu Zhixin (09903.HK) with a HK$1,013 target price, citing China's AI chip localization push.
"Tianshu Zhixin is positioned to capture a significant share of China's expanding AI accelerator chip market as domestic substitution accelerates," the BofA report said.
The bank forecasts China's AI accelerator chip market will grow to about US$90 billion by 2028 from US$32 billion in 2025, a 41% compound annual growth rate. Tianshu's product lines — the Tian Gai and Zhi Kai series — cover both training and inference workloads, the report said.
The HK$1,013 target from a major international bank could drive capital inflows into the stock and the broader Chinese domestic semiconductor sector, where US export controls have limited access to advanced chips such as Nvidia's H100 and B200.
The bank's conviction rests on three pillars: the domestic substitution trend benefiting from AI chip import restrictions, market share gains through new products and enterprise client expansion, and a diversified supply chain supporting revenue growth.
Tianshu Zhixin is a leading Chinese general-purpose GPU manufacturer. Its products compete directly with Nvidia's offerings in the Chinese market, where Beijing's semiconductor self-sufficiency push has accelerated demand for domestic alternatives. Rivals such as Huawei's Ascend series and Cambricon Technologies also vie for market share in the rapidly expanding segment.
The initiation validates the domestic AI chip thesis at a time when Chinese technology companies are racing to secure alternative computing capacity. Investors will watch for Tianshu's upcoming earnings and any new product announcements that could further support the growth narrative.
This article is for informational purposes only and does not constitute investment advice.
