Goldman Sachs: MetaX (688802.SS) — Local GPU Leader Benefiting from China AI Infrastructure; Initiate at Buy, TP RMB811
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Goldman Sachs initiates coverage on MetaX (688802.SS) with a Buy rating and a 12-month price target of RMB 811, implying a 58.2% upside from the current price of RMB 512.62. As China's leading domestic GPU designer, MetaX is strategically positioned to capture demand from accelerating AI infrastructure investments and ongoing technological localization. Goldman forecasts MetaX's AI training and inference GPU business will expand at an 88% compound annual growth rate between 2025 and 2030. This robust trajectory is underpinned by five core drivers: rising capital expenditures from Chinese cloud providers, expanding market share through competitive pricing, ongoing chip upgrades like the C600 launched in October 2025, comprehensive full-stack solutions, and expanding domestic advanced packaging capacity. Although China's AI infrastructure deployment currently lags global counterparts by 12 to 18 months, the continuous rollout of local foundational models is rapidly driving domestic AI expenditure. The brokerage highlights MetaX's formidable competitive moats, which include its proprietary architecture, the MXMACA software ecosystem, and deep collaboration with enterprise clients on large-scale compute clusters. While investors remain concerned about potential domestic foundry capacity constraints and intensifying competition, Goldman believes the immense AI inference market and high entry barriers will prevent destructive price wars. The target valuation utilizes a discounted 2030 EV/EBITDA framework.