A leading provider of full-stack GPU chips and computing platforms; initiate at Neutral

Research evidence excerpt

A leading provider of full-stack GPU chips and computing platforms; initiate at Neutral

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MetaX

A leading provider of full-stack GPU chips and

computing platforms; initiate at Neutral

Initiating Coverage: NEUTRAL | PO: 1,090 CNY | Price: 981.88 CNY

Neutral: Beneficiary of rising AI compute demand in China 10 July 2026

We initiate coverage on MetaX at Neutral with a PO of RMB1,090. MetaX is a leading Equity

domestic provider of full-stack GPU chips and computing platforms. We see MetaX as

one of the beneficiaries of China’s rapid AI compute demand growth and localization DaleyResearchLi, AnalystCFA >>

tailwinds. Our Neutral rating reflects (1) strong revenue growth, led by wider GPU Merrill Lynch (Hong Kong)

adoption; (2) improving commercialization driven by system-level differentiation; and (3) +852daley.li2@bofa.com3508 5365

improving profitability profile. However, we think its current valuation at 62x FY27E P/S Harry Zhuang >>

has largely reflected above positives and looks broadly fair relative to its A-share peers Research Analyst

Merrill Lynch (Hong Kong)

with similar growth profile and revenue scale. Our RMB1,090 PO is derived using a DCF +852 3508 7998

methodology (9% WACC, 3% terminal growth). Downside risks: slower AI capex growth, harry.zhuang@bofa.com

intensified competition, and supply chain constraints.

Promising share gain on system-level differentiation Stock Data

Amid surging AI compute demand in China, policy-driven localization and supply chain

constraints are accelerating the shift toward domestic AI accelerator vendors. We expect Price 981.88 CNY

MetaX’s share in China AI accelerator market (in terms of revenue) to improve from Price Objective 1,090 CNY