Smart-Core forecasts 460% profit surge on AI chip demand

Smart-Core Holdings Ltd. (2166.HK) expects first-half 2026 net profit to surge at least 460%, driven by AI infrastructure demand for its IC chips and optical communication products.

"The group's business units related to AI infrastructure construction, namely optical communication and memory products, recorded a significant increase," the company said in a stock exchange filing.

The Hong Kong-listed chip solutions provider attributed the profit jump to an overall increase in demand for its IC chips, benefiting from the boom in AI technologies and growing market demand for high-performance computing and data transmission components. The company cautioned that the figures are based on unaudited management accounts.

The profit alert positions Smart-Core among Hong Kong-listed semiconductor firms riding the AI infrastructure buildout. Shares rose 7.86% on the announcement, giving the company a market capitalization of HK$2.33 billion. Average daily trading volume stands at about 2.2 million shares.

Smart-Core operates through business units focused on AI infrastructure, with product lines spanning optical communication and memory that serve the fast-growing AI technology and data demand markets. The company's offerings align with rising global demand for high-performance computing, data transmission, and storage components that underpin next-generation digital infrastructure.

The guidance raise signals management expects AI-driven demand to accelerate through the second half of the year. Investors will watch the company's interim results release for further details on segment-level margins and revenue breakdown.

This article is for informational purposes only and does not constitute investment advice.