Invisible Champion of AI Chip Supply Chain: Why Institutions are Focusing on This Company

A Summary in One Sentence

The demand for AI chips is exploding, with 70% of the world's advanced chip production capacity in the hands of a single company—how impressive is this bottleneck position?

Market Size: Opportunities from Hundreds of Billions to Trillions

By 2030, the global AI chip market is expected to reach $323 billion, with a compound annual growth rate of 29%. In the context of the entire semiconductor industry, the market will expand from the current $789 billion to $1.3 trillion—what does this mean?

The market cake is wildly expanding, and the knife to cut the cake is in the hands of only a few.

Data Speaks: How Fast is the Growth

In the first nine months before 2025, this company’s revenue approached 89 billion USD, a year-on-year increase of 36%—what does this growth rate signify? By comparing it to the surge in shipments of leading chip design companies like Nvidia, AMD, and Qualcomm, one can see how great the pressure is on the upstream supply chain.

More importantly, revenue costs only increased by 24%, indicating that although production is running at full capacity, cost control has not collapsed. Of course, the company also endured comprehensive losses exceeding $4 billion (exchange rate + asset impairment pressure), leading to a comprehensive profit growth rate (30%) that could not keep up with revenue growth, but this is normal during a period of tight capacity.

Valuation: Undervalued Strategic Assets

The stock price has risen over 50% in the past year, but the P/E valuation is only 29 times—compared to the five-year average of 25 times, the premium space is not large. Interestingly, this valuation has also been discounted due to geopolitical risks (with major production capacity in Taiwan).

Compared to its major clients (Apple, Nvidia, etc.), this company's valuation is actually cheaper. Looking at it from another angle: the global AI hardware supply chain relies on it, and China also needs its chips—this strategic position has actually overestimated the risks.

Investment Logic

If you are optimistic about the AI chip cycle, then companies that control global advanced production capacity are the most stable chips in this wave. They do not need to design chips, they just need to maximize their production capacity - and this is exactly what is most lacking right now.