HK Stock Market Move | INNOSCIENCE (02577) rose over 3% as the demand for gallium nitride power devices is expected to increase. The company will benefit from the construction of 800V artificial intelligence data centers.

INNOSCIENCE (02577) rose over 3%, and as of the time of writing, it is up 2.11%, trading at HKD 46.5, with a turnover of HKD 101 million. According to news reports, Daiwa published a research note indicating that as the power density of AI data center racks gradually increases from the current level of approximately 150kW to 1MW starting next year, the existing 400V AC distribution framework will reach its physical limits. It is predicted that the industry will transition to an 800V DC framework starting in the second half of next year, at which point the demand for GaN power devices will increase. Daiwa estimates that between 2027 and 2030, 800V AI data centers will generate a demand for GaN power devices between USD 540 million and 4.5 billion. As the world's largest supplier of GaN power devices, INNOSCIENCE is expected to capture about 30% of the market share by 2025, giving it a certain competitive advantage. Daiwa projects that from 2025 to 2030, INNOSCIENCE's revenue will achieve a compound annual growth rate of 58%, benefiting from the construction of 800V AI data centers. The net profit margin is expected to expand from -24% in 2026 to between 17% and 24% in 2029 to 2030, with net profit anticipated to grow from RMB 132 million in 2027 to RMB 2.826 billion in 2030, achieving a compound growth rate of 178%.