Goldman Sachs Raised Its Target Price For Cambricon, China Stock To 1,835

Goldman Sachs further raise TP by 50% to Rmb1,835 on the back of China Cloud raising capex, clients' diversifying chipset platforms to reduce single suplier risks, and Cambricon's strong R&D and continuous R&D investments on AlI chips and Software. We raise Ni by 59% /28% /29% in 2025-27E and 1-6% in 2028-30E mainly on higher AI chips shipments, reflecting the rising Al demand in China and Cambricon's leading market position locally. We assume Al chips units to grow at +72% CAGR in 2025-30E, driving NI to US$2.5bn, and if the Al chips at~90% CAGR, we see additional 64% NI and valuation per share up to Rmb3,934. Valuation: Target EV / EBITDA derived from sector ratio of 2026E EV/EBITDA to 2027E EBITDA YoY and margin, which is updated to 1.5x from 1.1tx, refecting the re-rating on China Al supply chain. New TP at Rmb1,835 (implied 44x: 2030E PIE or 9x2030E EV I Sales). Maintain Buy.