Morgan Stanley: The performance of the Cambrian period exceeded expectations, benefiting from the strong shipment of the Siyuan 590 chip, and maintaining a rating of overweight.

Morgan Stanley reported that revenues in the first quarter of the Cambrian era increased by 160% year-on-year, exceeding both the bank's and the market's expectations, thanks to strong shipments of the Siyuan 590 chip. Analysts such as Charlie Chan stated in the report that prepayments for the first quarter of 2026 increased by 155% quarter-on-quarter to 1.9 billion yuan, mainly supported by newly acquired chip production orders. Production outsourcing by Cambrian at SMIC has gradually stabilized, and it is expected that shipments will see a significant increase starting from the second quarter of 2026. The recommendation to maintain a buy rating.