AI Chip Stocks Diverge: Montage Surges 63%, Sunking Slips into Red
Chip stocks have diverged significantly, as evidenced by the starkly contrasting performance of Montage Technology and Sunking Technology. While the former posted a robust net profit growth exceeding 60%, the latter reported a paper loss despite higher revenue.
The divergence in their performance underscores the different challenges faced by companies at various nodes of the AI computing chain, including cost structures, product cycles, and currency risk management.
Montage Technology's first-half 2026 revenue is projected to reach approximately $492.9 million, up about 26.6% year-on-year, while net profit attributable to shareholders of the parent company is expected to land between $280.8 million and $310.4 million, representing growth of 63.9% to 81.2%.
The significant profit surge at Montage Technology can be attributed primarily to robust industry demand driven by AI trends, particularly the rising penetration rate of DDR5 memory interface chips.
On the other hand, Sunking Technology reported a paper loss due to foreign exchange fluctuations, which resulted in a 59 million yuan ($8.7 million) loss on forward contracts. The company attributed this to significant volatility in the Swiss franc exchange rate during the first half.