Citi has revised upwards its target prices for both the A- and H-shares of Montage Technology, a provider of memory interface chips, with the H-share target price seeing a nearly 49% increase. Montage Technology reported robust performance in the first quarter, achieving a gross margin as high as 70%, which effectively counterbalanced the revenue limitations stemming from a constrained substrate supply. Analysts have observed that, with the progression of AI technology, Montage Technology holds a promising future and is poised to be a key beneficiary of the escalating demand for CPUs. The company's management foresees that the scarcity of materials will alleviate in the second quarter. Citi has adjusted its target price for Montage Technology's A-shares from RMB 205 to RMB 245, and for H-shares from HKD 205 to HKD 305. H-shares possess a scarcity value within AI infrastructure investments and are projected to maintain a 20%–30% premium over A-shares over the long haul.