ILUVATAR COREX (HKG: 09903) saw its share price climb more than 4% during Friday morning trading, before settling at a 2.48% gain to HK$347.60 with turnover reaching HK$180 million. The stock's upward momentum follows a research note from Macquarie highlighting the company's solid margin performance across its core product lines and a promising new product cycle that is expected to attract interest from cloud service provider (CSP) clients.

Macquarie analysts noted that during the first half of 2026, gross margins for the company's flagship 'Tiange' training chip and 'ZhiKai' inference chip are projected to hold steady at 64.5% and 35.6%, respectively. Following the July launch of the 'Tiange-300' next-generation training GPGPU, mass production could commence as early as the fourth quarter of this year. With enhanced computing power, die-to-die interconnect capabilities, and a higher average selling price, this new chip is expected to deliver a significant revenue contribution in the coming year.

Management also plans to unveil a new-generation super-node solution in the fourth quarter, which should carry robust profit margins. Macquarie expressed confidence in the company's medium-term outlook with CSP and large language model clients, given that ILUVATAR has already secured entry into China's cloud service provider market and that contributions from next-generation GPGPU chips are expected to ramp up gradually.

Meanwhile, Guosheng Securities highlighted that ILUVATAR's core general-purpose GPU products generated RMB 916 million in revenue during 26H1, representing 96.9% of total revenue and a year-on-year increase of 11.6 percentage points. The overall gross margin stood at 43.9%. The Tiange series contributed RMB 262 million in revenue, up 38% year-over-year with a gross margin of 64.5%, an improvement of 5.9 percentage points, driven by a richer mix of advanced products following the July 2026 release of the Tiange Gen4 architecture.

The ZhiKai series generated RMB 654 million in revenue, surging 651.8% year-over-year with a gross margin of 35.6%, up 3.2 percentage points. This growth was powered by higher sales volumes of premium versions, which lifted both shipment numbers and average pricing. The series is already deployed across internet platforms, large-scale AI models, financial services, commercial retail, healthcare, and transportation sectors.