Understanding the Market | INNOSCIENCE rises over 4%, completing a net fundraising of over HKD 1.5 billion through a placement, the company collaborates with NVIDIA to support the 800V architecture

According to Zhitong Finance APP, INNOSCIENCE (02577) is currently up over 4%, with a rise of 4.23% as of the time of writing, priced at HKD 74, with a transaction volume of HKD 238 million.

On the news front, INNOSCIENCE announced the completion of a placement of a total of 20.7 million new H shares, raising approximately HKD 1.55 billion net. INNOSCIENCE stated that HKD 482 million will be used for capacity expansion; HKD 376 million will be used to repay interest-bearing debts, and HKD 692 million will be used for working capital and general corporate purposes. This placement will further enhance the company's financial strength, market competitiveness, and overall strength, promoting long-term healthy development.

Citi released a research report stating that Nvidia is promoting a new 800 VDC AI server architecture, which can improve power efficiency and is expected to be launched in 2027. This design demonstrates the demand for gallium nitride in AI servers, with the bank estimating a total addressable market (TAM) of USD 10 billion. INNOSCIENCE, in collaboration with Nvidia, is the only supplier capable of providing a complete gallium nitride solution. INNOSCIENCE holds a 30% market share, which should represent a potential revenue share of RMB 21 billion. The bank has raised its forecast and target price to HKD 113.6 and reiterated its "outperform" rating