<div id="readability-page-1"><div>CLSA issued a report noting that Advanced Micro Devices, Inc. (AMD.US) reported better-than-expected results for 1Q26 and provided positive guidance for 2Q26. AMD indicated that the configuration ratio of CPUs to GPUs in AI data center infrastructure is gradually shifting from the traditional 1:4 (or 1:8) toward 1:1, which will expand the total addressable market for server CPUs to more than USD120 billion by 2030.Among the companies covered by the broker, MONTAGE TECH (06809.HK) +7.200 (+2.239%) will directly benefit from strong CPU demand; GIGADEVICE (03986.HK) -17.000 (-3.187%) will benefit from rising memory demand and an upward memory price cycle; SMIC (00981.HK) +1.300 (+1.737%) Short selling $1.89B; Ratio 11.444% will benefit from the overall semiconductor upcycle, with its advanced logic business continuing to strengthen; while HUA HONG SEMI (01347.HK) +2.200 (+1.691%) Short selling $679.53M; Ratio 11.467% is in a trough-to-recovery trend, supported by rising wafer prices.The broker reiterated its High-Conviction Outperform rating on MONTAGE TECH, and Outperform ratings on GIGADEVICE, SMIC and HUA HONG SEMI. (ha/w)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-06 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

Storage and chip sectors rose across the board, and the super cycle continues!

AMD's Q1 revenue reached $10.3 billion, a 38% year-over-year increase, with its data center business surging 57% to $5.8 billion. AI inference demand fueled demand for server chips. Is AMD firmly established as the second-largest player in AI chips? Feel free to share your thoughts below!

AMD's Q1 revenue reached $10.3 billion, a 38% year-over-year increase, with its data center business surging 57% to $5.8 billion. AI inference demand fueled demand for server chips. Is AMD firmly established as the second-largest player in AI chips? Feel free to share your thoughts below!

AMD Beats Estimates, Data Center Revenue Soars 57%

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CLSA has reiterated its High-Conviction Outperform rating on MONTAGE TECH, citing strong demand for CPUs as a key driver. The report highlights that AMD's positive results and guidance indicate a shift in AI data center infrastructure, expanding the market for server CPUs. GIGADEVICE, SMIC, and HUA HONG SEMI also received Outperform ratings due to rising demand and favorable market conditions in the semiconductor sector. MONTAGE TECH is expected to benefit significantly from this trend, while GIGADEVICE and SMIC are positioned well in the memory and logic segments, respectively.

- CLSA's report reveals that Advanced Micro Devices, Inc. (AMD) exceeded expectations for 1Q26 and offered positive guidance for 2Q26.  
- The report notes a shift in the CPU to GPU ratio for AI data centers from 1:4 (or 1:8) to 1:1, potentially expanding the server CPU market to over USD 120 billion by 2030.  
- Various companies, including MONTAGE TECH and GIGADEVICE, are expected to benefit from strong demand in CPUs and rising memory prices, with the broker maintaining positive ratings for these stocks.

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CLSA Reiterates High-Conviction Outperform on MONTAGE TECH ; GIGADEVICE , SMIC , HUA HONG SEMI  Rated Outperform