Jefferies: Innoscience's long-term upside potential remains enormous; maintains buy rating

Jin10 data reported on August 4th, Jefferies released a report stating that the bank attempted to roughly estimate the TAM using the current NV72 (based on GB200) as an example. The conclusion is that Nvidia's portion alone reaches $1.5 billion, and if including ASICs from cloud service providers, it would be $2.5 billion. Assuming that Innoscience's market share is 50% (with major competitors possibly being Infineon and Navitas) and a net profit margin of 25%, the bank estimates that the $1.5 billion increase in Innoscience's market capitalization last Friday was only capitalized with a 5x P/E ratio on the potential profits from AI servers, indicating that the long-term upside potential remains enormous. The bank also noted that it wouldn't be surprised by further profit taking after such a big pump. The bank maintains a "buy" rating on Innoscience with a target price of HKD 54.29. The bank agrees that it is still early to quantify the potential, as the 800VDC architecture and Ruben chip design have not yet been finalized. The bank expects mass production to begin in 2027.