Macquarie advises buy of China's AI chip players

3 min read

Macquarie's China information technology analysts said in a late June report that the best time to invest in China's AI chip players has arrived, driven by AI development, domestic LLM players, the token economy and government support that includes import restrictions on Nvidia GPUs. The bank initiated coverage on five traded firms, preferring Shanghai-listed Cambricon and Hong Kong-listed Biren Tech, and set outsized price targets for both. The report notes Huawei's Ascend led shipments, with Cambricon and Hygon following, and flags Hygon as a downside risk due to reliance on AMD tech transfer.

Macquarie rates Cambricon outperform with a 2,060 yuan target.