Montage Technology Expects Q3 Net Profit to Rise at Least 153% on AI-Driven Memory Interface Demand

Montage Technology, a Chinese fabless IC design company, said on Oct. 20 that it expects third-quarter revenue of about 2.079 billion yuan, up about 46% year over year. Net profit attributable to shareholders is expected to be 1.2 billion to 1.3 billion yuan, up 153.6% to 174.7% year over year.

Excluding non-recurring items, net profit is expected to be 950 million to 1.05 billion yuan, up 152.6% to 179.2% year over year.

The company attributed the growth to rising demand for server CPUs and memory interconnect chips, driven by the rapid development of AI inference and agent applications in 2026. Shipments of DDR5 memory interface and module companion chips increased significantly, and the share of third-, fourth- and fifth-generation DDR5 RCD chips rose further.

Revenue from the interconnect chip product line is expected to reach about 2.047 billion yuan in the third quarter, up about 49.3% year over year and 20.9% quarter over quarter, accounting for about 98.5% of total revenue. Gross margin for the product line is expected at 68% to 68.5%. The company said demand for related products is likely to keep improving in the fourth quarter.

Founded in 2004, Montage Technology is a fabless IC design company providing interconnect solutions for cloud computing and AI infrastructure.