Shanghai Biren Tech Co Ltd

The global optical transceiver market is projected to reach $34.4 billion by 2031, growing at a compound annual growth rate of 14.3%, driven by AI workloads and hyperscale data center expansion. The demand for high-bandwidth optical interconnects, including 400G, 800G, and 1.6T architectures, is accelerating as telecom operators and cloud providers upgrade networks, with 5G rollout further boosting adoption. In related market moves, Shanghai Biren Technology surged 18.8% to HK$46.62 after reporting higher sales and a reduced net loss for the first half of 2026, while Marvell Technology fell 10.3% to $216.62. Other chip stocks saw mixed trading: Micron Technology slipped 0.3% to $932.86, Broadcom declined 0.7% to $368.79, and NVIDIA dropped 4.6% to $217.55. SWI Group also became a Preferred Partner in NVIDIA's Cloud Partner program, gaining access to AI infrastructure resources.

Shanghai Lingang released its first-half 2026 performance forecast, expecting net profit attributable to owners of the parent to be between 500 million yuan and 600 million yuan, an increase of 169 million yuan to 269 million yuan compared with the legally disclosed data for the same period last year, representing a year-on-year rise of 51% to 82%. Compared with restated data, the increase is 258 million yuan to 358 million yuan, up 106% to 148% year-on-year. The company said the sharp growth in net profit was mainly due to a significant increase in fair value gains and investment income. In recent years, the company has been transforming from a traditional park development model to industrial cultivation services and supporting investments, increasing its investment in outstanding science and innovation enterprises within the park. During the reporting period, some projects invested in by the company through industrial investment funds achieved listings. Among them, SJ Semiconductor went public on the Shanghai Stock Exchange STAR Market in April 2026, raising approximately 4.8 billion yuan in its initial public offering. Its three-dimensional integrated chip manufacturing phase-one project, with a total investment of 10 billion yuan, has commenced construction in the Lingang new area. Biren Technology listed on the Hong Kong Stock Exchange in early 2026, becoming the first GPU stock in the Hong Kong market. The Pujiang domestic computing power sharing laboratory, which the company co-established, has been put into operation. Shanghai Lingang is accelerating its leap from a space provider to an industrial partner and ecosystem builder.

Macquarie says now is the best time to invest in China's AI chip players, citing domestic AI development, large language model growth, and government support. The firm initiated coverage on five stocks, with Shanghai-listed Cambricon as its top pick, rated outperform with a price target of 2,060 yuan, more than 50% above Friday's close. Among Hong Kong-listed names, Macquarie prefers Biren Tech with a target of 140 Hong Kong dollars, more than double Friday's close, while rating Shanghai-listed Hygon underperform due to market share concerns. Huawei remains the dominant AI chip supplier in China, with Cambricon a distant second in shipments last year, according to IDC data cited by Macquarie.